Property insurance rates fell globally in the third quarter of 2026 as competition intensified, while Markel Insurance CEO Simon Wilson said insurers’ margins were narrowing but the market had not yet become unprofitable.

Key Takeaways

  • Marsh measured a 10% decline in global property insurance renewal rates in the third quarter, following a 12% decline in the second.
  • Wilson expects competitive reinsurance renewals to put further pressure on primary insurance pricing.

Property insurance rates extend their decline

Marsh’s Global Insurance Market Index recorded a ninth consecutive quarterly decline in global property rates. The index measures average commercial insurance rate changes at renewal and reflects the mix of Marsh’s client portfolio.

In its third-quarter 2026 insurance market index, Marsh said ample capacity and lower reinsurance costs affected property prices and terms. The pace of the rate decline eased from the second quarter, though rates continued to fall.

Across commercial insurance as a whole, global renewal rates declined 5% in the third quarter. Casualty rates rose 1%, with increases in the United States driving the global change.

Markel sees competition spreading

Speaking during Markel Group’s third-quarter earnings call, Wilson said competition had been particularly strong in large, structured and layered property placements and was moving toward smaller and medium-sized business.

He said property insurance margins were lower than a few years earlier, but that profit could still be made. Wilson also cautioned that the storm season was not over, even though catastrophe activity and hurricane landfalls had been limited.

Wilson expects competitive terms in the coming reinsurance renewal season to contribute to softer conditions in the primary market. He said he hoped the property market would flatten during 2027, but that a fairly major loss event would be needed to push insurance and reinsurance rates substantially higher.

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