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US Insurance Market Rates

The Global Insurance Market Index is our proprietary measure of commercial insurance rate changes at renewal. Below are insights into the US insurance market.

Q3 2025

US composite rate declines, led by property insurance

Insurance rates in the third quarter in the US declined by 1% after being flat in the prior quarter.

US third quarter 2025

US composite insurance rate change

US property

US property insurance rates decline

Property insurance rates declined by 9%, the same as in the prior quarter.

Insurer competition intensified as capacity continued to increase from new and existing insurers, due in part to improved financial performance and lower reinsurance costs.
Some insurers offered more favorable policy terms to secure business and counteract rate reductions.
Clients sought cost-effective structural, coverage, and capacity solutions for cost control and balance sheet protection.
Insureds with loss history or submission quality viewed less favorably by insurers may have experienced below-average rate outcomes.

US casualty

Casualty insurance rate increases at slightly smaller pace

Casualty insurance rates increased by 8%, compared to 9% in the prior quarter; excluding workers’ compensation, the increase was 11%.

Workers’ compensation insurers remained focused on rising reserves and medical costs, which have the potential to drive future rate increases.
Auto liability continued to face pressure from large jury verdicts and rising auto physical damage repair costs.
General liability (GL) rates increased 2%, with greater increases typical in the real estate, hospitality, and public entities sectors, due to loss activity.
Insurers generally offered higher retentions and corridor deductibles for auto and GL, particularly for larger clients.
GL coverage increasingly includes exclusions for per- and polyfluoroalkyl substances (PFAS), biometric, and cyber, with additional exclusions common for real estate and hospitality sectors related to sexual abuse and human trafficking.
In the umbrella/excess liability market, risk-adjusted rates rose 16%, down from 18% in the second quarter; generally rates increased 9% compared to 14% in each of the prior two quarters.
- Some insurers offered a maximum of $10 million in capacity per risk due to adverse US litigation developments.
- Lead umbrella programs with loss experience viewed favorably by insurers typically experienced rate increases of 12% to 15%; those with adverse losses faced increases of 30% or more.
- Limits decreased as little new capacity entered the market. High-excess minimum pricing rose to $10,000 per million; most insurers capped single-risk capacity at $10 million, though some global insurers offered $25 million.
- Insurers generally favored supported umbrella options over single tower capacity due to frequent severe claims; umbrella placements tended to be limited to 10% to 20% of excess casualty portfolios.
- Third-party litigation funding concerns continued, with insurer renewal pricing targeting 12% to 15% above loss cost trends.
- Rising auto liability claim frequency and severity drove higher attachment points for large fleets, especially in higher-risk states.
- General and product liability claims, especially pandemic-related, showed increased severity, with large jury verdicts and pre-trial settlements driving higher loss costs.

US financial and professional lines

Financial and professional lines flat

Financial and professional lines rates declined 2% after being flat in the prior quarter.

Directors and officers liability (D&O) rates declined 3%; insurers are beginning to resist the large decreases experienced over the past three years.
- Some insurers withdrew capacity based on low pricing.
- Many renewals were completed at or near expiring price levels.
- Insurers generally had less appetite for high excess layers than in prior quarters.
- Excess insurers increasingly moved down the tower to look to retain more premium.
Fiduciary rates decreased by 2%, compared to a 1% increase in the second quarter.
- Lawsuits applying Employee Retirement Income Security Act (ERISA) theories — especially excessive fee litigation involving retirement, health plans, and pharmacy benefit managers — contributed to insurer uncertainty.
- Ongoing ERISA 401(k) excessive fee litigation, rising defense costs, settlements, and plaintiffs’ fees generally led to insurer losses.
- Insurers sought minimum class-action retentions of $1 million to $10 million for larger plans due to escalating legal costs.
- Lawsuits related to pension risk transfer and calculations brought renewed underwriter attention to defined benefit plans.
- New entrants typically offered lower retentions and often sought to write fiduciary coverage together with D&O programs.
Financial institutions rates decreased 2%, compared to being flat in the prior quarter.
Errors and omissions (E&O) rates increased 1%, the same as in the prior quarter.

Cyber rates decrease for 10^th consecutive quarter

Cyber insurance rates decreased 3%.

Capacity remained stable, with additional supply anticipated before year-end from new managing general agents (MGAs) and direct insurers.
Generative AI continued to raise new cyber risk concerns, prompting updated underwriting questions on AI development and governance.
Through the third quarter, there has been a slight reduction in US claim counts year-over-year.

Our rates reflect the segment mix of Marsh’s client portfolio.

Global Insurance Market Index

10/22/2025

The Global Insurance Market Index is our proprietary measure of global commercial insurance rate change at renewal — providing insights on the world's major insurance markets.

Skyline of London over Tower Bridge on the Thames

Global Insurance Market Index

UK insurance rates

10/22/2025

Insurance rates in the UK declined 6% in the third quarter 2025.

Global Insurance Market Index

Latin America and Caribbean insurance rates

10/22/2025

Insurance rates in the LAC region decreased 6% in the third quarter.

Berlin, Germany viewed from above the Spree River.

Global Insurance Market Index

US Insurance Market Rates