Global commercial insurance rates fell by 5% in the first quarter of 2026, marking the seventh consecutive quarterly decline, according to the latest Global Insurance Market Index from Marsh.

The decrease follows a 4% fall in Q4 2025, with continued abundant capacity and strong competition among insurers driving softer pricing across most lines.

All regions recorded year-on-year declines. The Pacific region saw the largest drop at 12%, followed by India, the Middle East and Africa at 10%. Latin America and the Caribbean and the UK both fell by 8%, Canada by 6%, and Europe and Asia by 5%. The US, which was flat in the previous quarter, recorded a 1% decrease.

Property rates led the trend, falling 9% globally, with double digit declines including 14% in the Pacific, 12% in Latin America and the Caribbean and 10% in the US, UK and IMEA. Casualty rates rose 3% overall, driven by a 9% increase in the US, while declining elsewhere. Financial and professional lines dropped 5% globally, with reductions across all regions, and cyber rates also fell 5%, with the sharpest decline of 14% in IMEA.

Commenting on the figures, John Donnelly, president, Global Placement, Marsh Risk, said: “While the Middle East conflict is being carefully observed for its potential impact on insurance markets, the current competitive environment is expected to persist as insurer profitability remains strong. This is especially true in lines such as property, which is supported by favourable reinsurance terms and significant capacity. Given broad economic uncertainty and inflationary pressures, clients have the opportunity to optimise their programme structures, increase limits or adjust retentions to improve the resilience of their programmes in the year ahead.”

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