Commercial insurance rates fell by an average of 5% globally in the third quarter of 2026, marking a ninth consecutive quarterly decline, Marsh said in findings published on October 21. Property coverage led the reductions, while US casualty risks remained an exception to an otherwise competitive market.
Key Takeaways
- The global rate decline moderated to 5% from 6% in the second quarter.
- Property rates fell 10%, while casualty rates rose 1%, driven by US pricing.
- Abundant capacity helped buyers negotiate broader coverage, higher limits and lower deductibles.
Table of Contents
- Commercial insurance rates decline, but savings vary
- Property leads reductions as US casualty remains difficult
- Regional declines range from 1% to 14%
- Cyber and professional lines extend their declines
- Conclusion
Commercial insurance rates decline, but savings vary
Marsh’s Global Insurance Market Index measures changes in commercial insurance rates at renewal, rather than changes in total premiums collected by insurers. Its figures are averages, rounded to the nearest whole percentage point, and reflect the mix of business in Marsh’s client portfolio.
The third-quarter decline was smaller than the 6% reduction recorded in the previous quarter. That means prices continued to ease overall, but at a slower pace; it does not mean rates increased.
Marsh attributed the competitive conditions to strong insurer results, ample capital, more favorable reinsurance terms and additional market capacity. Buyers were able to negotiate improvements beyond price, including broader coverage, higher policy limits, lower deductibles and longer-term agreements.
| Item | Details |
|---|---|
| India, Middle East and Africa | Q3 2026 composite renewal rates down 14% |
| Pacific | Down 12% |
| Latin America and Caribbean | Down 9% |
| United Kingdom | Down 8% |
| Canada, Europe and Asia | Each down 6% |
| United States | Down 1% |
Property leads reductions as US casualty remains difficult
Global property insurance rates fell 10%, following reductions of 12% in the second quarter and 9% in the first. Lower reinsurance costs and available capacity supported better terms, although insurers remained less willing to cover catastrophe-exposed risks and accounts with unfavorable loss histories.
Casualty rates moved in the opposite direction, rising 1% globally after a 2% increase in the second quarter. The US was the only region with an increase: casualty rates there rose 6%, compared with 7% in the preceding quarter.
Exposure to US risks also affected insurance programs placed elsewhere. Marsh reported more selective underwriting, higher thresholds before insurers begin paying claims and smaller amounts of coverage offered by individual insurers. Available capacity therefore did not necessarily translate into substantial rate relief.
Regional declines range from 1% to 14%
Composite rates declined across every region tracked by Marsh. India, the Middle East and Africa recorded the largest reduction, while the US had the smallest. The US decline slowed from 2% in the second quarter to 1% in the third.
The regional averages conceal differences between coverage categories. For example, US property rates fell 10% even as US casualty rates increased, illustrating why the overall market decline is not a uniform measure of an individual business’s renewal outcome.
Cyber and professional lines extend their declines
Financial and professional lines rates fell 3% globally, extending their run of quarterly reductions to 17. US rates increased 1%, unchanged from the previous quarter. Some directors’ and officers’ insurance buyers secured double-digit reductions, but these were individual outcomes rather than the market average.
Cyber rates declined 4% for a 13th consecutive quarter, matching the second-quarter reduction. US cyber pricing was flat after an extended period of decreases, while other regions continued to record lower rates. New entrants added capacity, helping some buyers broaden coverage and reduce the losses they must retain themselves.
John Donnelly, president of global placement at Marsh Risk, said geopolitical uncertainty and broader economic concerns meant many buyers preferred to retain premium savings rather than purchase additional coverage. The practical choice was therefore not simply whether to seek a lower price, but whether to use available savings to change the insurance program.
Conclusion
The next renewal is where these market conditions will translate into terms for individual businesses. Commercial insurance rates continued to favor buyers overall, but US exposure, catastrophe risk and loss records remained important limits on the savings and coverage improvements available.
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This FinanceVelix article provides general information, not personalized financial, investment, legal, or tax advice. Market prices, interest rates and economic conditions can change; investments carry a risk of loss. Facts reflect the material available when published and may change. Check important information independently and consult a qualified professional when needed. Mentioning an asset, company, or service is not an endorsement.
