Global commercial property insurance rates declined 9% in Q4 2025, according to the latest market update from Marsh. The drop marks an acceleration from the 8% decline recorded in Q3.
The Pacific region led the downturn with a 14% decrease, extending a seven-quarter run of falling rates.
Marsh attributes the broader global decline to heightened insurer competition, favorable loss activity, improved reinsurance pricing, and expanding capacity across markets.
John Donnelly, President of Global Placement at Marsh, said capacity remained ample across most lines and geographies for the past six quarters.
He expects the trend to continue through 2026 barring major loss events. Clients, he noted, now negotiate reduced premiums and broader terms, including structural adjustments to strengthen program resilience.
In the US, property rates fell 8% in Q4, slightly slower than the 9% drop in Q3. Marsh links the moderation to renewal timing.
January placements included fewer catastrophe-driven programs with outsized decreases, tempering quarter-over-quarter movement. Insurer competition intensified as additional capacity entered the market, supported by lower reinsurance costs.
Canada mirrored the US with an 8% decline. Carriers offered improved policy conditions to retain and attract business amid sustained pricing pressure.
The UK recorded a 10% reduction, compared with 7% in Q3. Marsh reports strong competition, abundant capacity, and willingness among insurers to deploy larger limits, even in complex industry segments.
Across continental Europe, rates decreased 8%. The IMEA region posted an 11% decline, with variation. Middle East and Africa markets saw reductions ranging 5% to 15%, while India experienced declines between 15% and 25%.
Asia recorded the smallest movement, with rates down 5%, consistent with prior quarters. In Latin America and the Caribbean, rates fell 12%, led by Chile and Brazil.
According to Beinsure, efficient reinsurance pricing at January renewals continues to filter through primary markets.
Marsh indicates carriers are likely to pass through further reinsurance benefits in early 2026 as competitive dynamics persist across commercial property lines.
