According to the latest Global Insurance Market Index (GIMI) released by Marsh, global commercial insurance rates fell 6% in the second quarter of 2026, the eighth consecutive quarter of decline, driven by ample capacity and fierce competition from insurers across all major product lines.
“Insurers’ strong profitability, excess capital, lower reinsurance costs and improving investment returns are increasing competition and leading to lower rates,” Marsh said.
Global commercial insurance rates fell 6% in the second quarter of 2026, following a 5% decline in the first quarter of this year.
According to the Marsh Index, all global regions experienced year-over-year declines in composite interest rates in the second quarter of 2026.
India, the Middle East and Africa (IMEA) saw the largest decline, with the combined rate falling by 16%. The Pacific and Latin America and the Caribbean (LAC) followed, with declines of 13% and 9% respectively.
Meanwhile, composite rates fell by 8% in the UK, 7% in Canada, 6% in Europe and 5% in Asia.
In the United States, composite interest rates continued to slow, falling by 2% in the second quarter of 2026 after falling by 1% in the first quarter of 2026.
Notably, global real estate prices fell by 12%, following declines of 9% in the first quarter of 2026 and the fourth quarter of 2025.
The Marsh Index showed double-digit declines in five regions: IMEA (19%); Pacific (15%); Latin America (14%); United States (13%); and United Kingdom (11%).
Real estate rates also fell in Europe (9%), Canada (8%) and Asia (5%).
In terms of casualties, rates rose 2% globally, down from a 3% increase in the first quarter.
Marsh explained that casualty rates declined in all regions during the quarter, with the exception of the United States, which saw a 7% increase (compared to 9% in the first quarter).
“U.S.-facing risks continue to face greater underwriting scrutiny and pricing pressure; while still available, capacity is increasingly selective, with a focus on risk quality and project structure,” Marsh observed.
Global cyber insurance rates also fell 4%, marking the twelfth consecutive quarter of declines.
IMEA had the largest decrease of 14%, followed by LAC with a decrease of 10%, and the United States with a decrease of 2%.
John Donnelly, president of global operations at Marsh Risk, further elaborated on the findings, saying: “Insurers’ strong financial performance, capital surplus, lower reinsurance costs and improved investment returns have led to greater competition and resulted in lower rates.
“In many markets, in addition to competing on the basis of price, insurers are seeking to differentiate themselves through broader coverage, expanded policy terms and lower deductibles.
“While market conditions remain generally favorable, results continue to vary by risk. Industry, geography and catastrophe risk continue to influence pricing and insurer preferences.
“The real estate market saw the largest decline globally (12%) in the second quarter, with available capacity and intense competition giving buyers greater scope to revisit costs and project structures. Real estate tends to be the largest single prime category for most corporate entities.
“Global Financial and Professional Lines (FINPRO) and network rates also continue to fall, but the pace of decline has slowed, approaching more stable pricing levels. The United States was the only region to see modest increases in FINPRO rates.
“Casualty insurance was the only major product line to record global rate increases. While pricing declined in all regions outside the U.S., the U.S. market continued to experience significant pricing increases, driven by claims severity and continued litigation pressure. The U.S. market remains challenging despite early signs that growth may be slowing.
“While global economic uncertainty has led to many buyers retaining premium savings, many organizations continue to invest in other risk strategies, including captive strategies.
“Absent a severe Northern Hemisphere storm season or a series of unexpected major natural disasters, current market conditions are expected to persist. This may provide additional opportunities for insureds to not only reduce top-line costs but also improve coverage and refine plan designs, which may better prepare them for future market changes.”
