UK and global commercial insurance rates continue to fall

Global commercial insurance rates fell 4% in the second quarter of 2025, their fourth successive quarterly fall and the largest seen over the past year.

This is according to insurer Marsh’s latest Global Insurance Market Index, which also revealed that all global regions saw a year-on-year composite rate decline of between 4% and 11% in Q2 2025 – except the US, which saw no change.

The firm reported that “insurer competition is currently the main catalyst behind rising market capacity, more favourable rates and broader coverage options”.

UK leads slide

Overall rates in the UK have dropped 6% for a second quarter in a row and have now seen six quarters of sustained falls.

UK property has likewise seen two successive quarters of 6% rate drops, extending its downwards trend to five quarters.

UK casualty, in contrast, has seen a more stable progression, seeing a modest 1% fall in the most recent period after having remained largely steady for the past year.

Financial and professional lines have now seen rates drops in the last 11 quarters, none less than 4%, and most recently dropping by 8% in Q2 2025.

John Donnelly, president of global placement at Marsh, said: “Mounting competition among insurers with ambitious growth targets is providing reduced pricing and broader coverage options.

“Against this backdrop, rising US casualty rates are a concern for clients. As geopolitical issues, including tariffs and cross-border conflicts, create new challenges and uncertainties, organisations now have access to many attractive traditional and alternative financing strategies to manage their risks.”