Global commercial insurance rates fall 5% in Q3 2026; marks ninth consecutive quarterly decline

NEW YORK | October 21, 2026

According to the latest Global Insurance Market Index (GIMI) released today by Marsh (NYSE: MRSH), a leading global professional services firm, global commercial insurance rates fell, on average, by 5% in the third quarter of 2026, following a 6% decline in Q2 2026. Property rates declined by 10%, while casualty rates increased 1%, driven largely by continued challenges in the US.

Q3 2026 marks the ninth consecutive quarter of rate decreases, which continue to be fueled by ample capacity and sustained insurer competition across all major product lines. Strong insurer profitability, a surplus of capital, lower reinsurance costs, and higher investment returns are intensifying competition and contributing to lower rates. In addition to reduced rates, enhanced coverage terms, higher limits, lower deductibles, and more long-term agreements were achievable for clients renewing policies during the quarter.

All global regions experienced year-over-year composite rate decreases in Q3 2026. India, the Middle East, and Africa (IMEA) experienced the largest composite rate decrease across all regions, at 14%, the Pacific and Latin America and Caribbean (LAC) regions declined by 12% and 9% respectively. In the UK rates declined by 8%, and in Canada, Europe, and Asia by 6%. The overall composite rate in the US - which declined by 2% in Q2 2026 ­- fell by 1% in Q3.

Commenting on the report, John Donnelly, President, Global Placement, Marsh Risk, said: "Geopolitical uncertainty and broader economic concerns remain part of the operating environment, and many insurance buyers were more inclined to retain premium savings rather than reinvesting them in additional coverage. The current environment continues to present opportunities for insureds to enhance their program structures and examine alternative strategies to manage risk."

Other findings included:

• Property rates declined by 10% globally, following decreases of 12% in Q2 and of 9% in Q1. Double-digit decreases were recorded in five regions: IMEA (15%); Pacific (14%); LAC (13%); the UK (11%); and the US (10%). Rate decreases were also recorded in Europe (9%), Canada (8%), and Asia (7%).
• Casualty rates increased 1% globally, down from a 2% increase in Q2. All regions experienced rate decreases this quarter except the US, where casualty rates increased by 6% (7% in Q2). US-exposed risks continued to face heightened underwriting scrutiny and pricing pressure; while still available, capacity was increasingly selective, with higher attachments, smaller line sizes, and less rate relief even for non-US programs.
• Financial and professional lines rates decreased 3%, marking the seventeenth consecutive quarter of declines. All regions saw moderate decreases, except the US, where rates increased by 1%, the same as last quarter. Insurers showed a focus on D&O rates, although double-digit reductions were achieved in select situations.
• Cyber insurance rates declined by 4% globally - the thirteenth consecutive quarter of declines - the same rate as the previous quarter. Rates were flat in the US after an extended period of declines, while all other regions continued to see reductions. Capacity continued to expand through new entrants and many buyers used the added capacity to broaden coverage and lower retentions.

Mr. Donnelly added: "Market conditions remained broadly unchanged, with a benign US hurricane season contributing to favorable underwriting results for insurers. Strong capacity and competition across much of the market, when combined with favorable reinsurance conditions, continue to provide clients with opportunities."