According to the latest Marsh Global Insurance Market Index, global insurance rates fell 4% in the fourth quarter of 2025, marking the sixth consecutive quarter of decline.
This downward trend is supported by the huge capacity of insurance companies driven by reinsurance growth and the entry of new insurance companies.
The influx of capital has increased competition, leading insurers to offer better terms, broader coverage and lower premiums to retain and win customers.
Although the global trajectory is downward, the United States remains an outlier. U.S. interest rates were flat after falling 1% in the previous quarter. In comparison, the Pacific region saw the largest decline in composite rates, at 12%.
Product lines saw varying degrees of relief, with property and networking leading the decline. Global property insurance rates fell by 9%, with the Pacific region experiencing the largest decline, reaching 14%.
Global financial and professional lines rates fell 4%, with declines occurring in all regions except the United States, where rates were flat. Global cyber insurance rates fell 7%.
WTW pointed out that the most significant headwind facing global risk managers remains U.S. casualty insurance, which saw rates rise 9% in the fourth quarter, driven by a litigious legal environment and a large number of “nuclear” jury verdicts.
Although new capacity has entered the U.S. excess casualty market, demand continues to exceed supply, resulting in a larger increase in excess capacity compared to the mainline.
“While U.S. composite rates are flat, most other regions have seen steeper rate declines,” said John Donnelly, president of global placements.
In this environment, many organizations are looking beyond traditional insurance. Clients with stronger risk profiles are increasingly taking advantage of the competitive market to negotiate improved terms, expand coverage and explore alternative risk transfer solutions such as self-insurance and self-insurance.
“Globally, clients are increasingly using captive insurance to retain risk, a strategy consistent with strong performance in the broader insurance market, although the use of captive insurance may increase vulnerability to major loss events,” Donnelly said.
The conclusion: “Overall, customers continue to benefit not only from lower rates, but also from the opportunity to negotiate improved terms and conditions. Competition among insurers is expected to intensify. One of the many drivers is likely to be lower reinsurance costs. Unless there are extremely large catastrophe losses or a series of losses, global rates are likely to continue on a downward trend.”
