After seven consecutive years of increase, global commercial insurance rates have declined for six consecutive quarters

Global commercial insurance rates are still in a downward cycle. The latest global insurance market rate report released by international insurance brokerage giant Marsh shows that in the fourth quarter of 2025, global commercial insurance rates fell by another 4%. After seven years of increases, this indicator has now declined for the sixth consecutive quarter. Marsh stated that this downward trend is attributed to a significant increase in the underwriting capacity of insurance companies, driven by growth in the reinsurance business and the entry of new insurance companies, which has intensified market competition and overall provided commercial insurance clients with more favorable terms and broader coverage options. Global commercial insurance comprehensive rate trend (Source: Marsh) From a regional perspective, all regions saw a decline in comprehensive rates except for the United States, where rates remained flat after a 1% decrease in the third quarter of last year. The Pacific region experienced the largest decline in comprehensive rates, reaching 12%; while in Asia, commercial insurance rates fell by 5% in the fourth quarter, consistent with the previous quarter. In Asia, except for Vietnam and Japan, where rates increased by 15% and 1% respectively, all other countries or regions showed a downward trend. In the mainland China market, the comprehensive rate for commercial insurance slightly decreased by 1% in the fourth quarter, remaining flat compared to the third quarter. By type of insurance, accident insurance is a relatively rare commercial insurance category that saw a rate increase in the fourth quarter of 2025. Marsh's data shows that global accident insurance rates rose by 4% in that quarter, up from 3% in the third quarter. Despite the general downward pressure on rates driven by fierce competition among insurance companies in most regions, accident insurance rates in the United States still rose by 9% in the fourth quarter. Marsh believes this is mainly due to persistently high claims amounts and large jury verdicts, particularly in the excess accident insurance sector. Although new underwriting capacity has entered the U.S. excess accident insurance market, demand in this area still exceeds supply. In the property insurance sector, global property insurance rates fell by 9% in the fourth quarter, while rates in Asia decreased by 5%. Marsh indicated that with sufficient underwriting capacity, competition among insurance companies has intensified, leading to increased use of long-term agreements (LTA), offering low claims bonuses and multi-year discounts. Against this backdrop, some clients have seen improvements in their sub-limits, deductibles, and other insurance restrictions. At the same time, rates for financial insurance and professional liability insurance also continued to decline. Except for the United States, where rates remained flat, all other regions experienced declines in the fourth quarter. The sharp fluctuations in rates observed in previous quarters have been replaced by a more stable downward adjustment, reflecting a more balanced market landscape With the rise in customer demand and the frequent occurrence of cybersecurity incidents, the cyber insurance market continues to expand. "More and more customers are purchasing cyber insurance for the first time or increasing their existing coverage limits. Insurance companies and their capital providers are increasing capital investments to respond to the escalating risks, providing support for market growth. The influx of underwriting capacity has intensified market competition, leading to a decline in cyber insurance rates across various regions." According to Marsh, global cyber insurance rates fell by 7% in the fourth quarter, with a 10% drop in the Asia region. Marsh stated that competition among insurance companies is expected to intensify further, with declining reinsurance costs being one of the many driving factors. Unless there are extreme catastrophic losses or a series of significant loss events, global rates are likely to continue on a downward trend. (This article is from Yicai)