Global Insurance Market Index 2024 | Global Insurance Market Index

Q1 2025 GIMI commentary

Driven by increased insurer competition, global commercial insurance trends continued to improve for our clients, on average, in the first quarter of 2025, with the exception of US casualty. We expect these trends to continue and for insurer competition to intensify, barring unforeseen changes in conditions.

The first quarter of 2025 marked the third consecutive quarter of global rate decline (-3%) in Marsh’s Global Insurance Market Index, following seven years of quarterly increases. The breadth of declines — seen in all regions and product lines apart from casualty — is a positive for our clients.

It’s important to keep in mind that insurance pricing trends can, at any given time, be suddenly reversed due to a variety of factors, including a major catastrophe or series of catastrophes. For example, every year brings a keen eye on the North American tropical storm/hurricane season.

Clients in the first quarter generally benefitted both from reductions in pricing and improved coverage options. All major insurers had ambitious growth targets and experienced generally favorable conditions, including in reinsurance pricing.

The main product line bucking the trend was US casualty, where rates rose 8% in the first quarter, contributing strongly to a 4% global increase. Due largely to the severity of claims and large jury verdicts — sometimes called "nuclear verdicts” — available capacity tightened, with underwriters continuing to reduce their line sizes. US casualty market conditions typically impact rates and coverage in other regions.

In the US, the overall composite rate declined by 1%, driven by a 9% decline in property insurance. Globally, property rates decreased by 6%, including by 9% in the Pacific, 6% in the UK, and low single digits in other regions.

The pace at which rates in some product lines decreased slowed or flattened in some regions compared to prior quarters. For example, financial and professional lines globally declined 6% the same as in the prior quarter; cyber declined 6% compared to a 7% decline in the prior quarter.

In addition, clients typically experienced insurer competition not only in rates, but in the ability to negotiate improved terms and conditions. Clients should work closely with their Marsh broker to identify areas in which it may be possible to broaden coverage compared to what was available in recent years.

At Marsh, we’re committed to empowering our clients to make informed decisions with confidence. We hope these insights enhance your decision-making and help you and your organizations navigate today’s evolving market conditions and global dynamics. Please reach out to your Marsh representative if you would like to learn more.

- John Donnelly, President, Global Placement

Q1 2025

Global insurance markets: Increased insurer competition drives declining rates

Global commercial insurance rates declined by 3% in the first quarter of 2025, the third consecutive decrease in the composite rate following seven years of increases, according to the Marsh Global Insurance Market Index.

A continuing increase in insurer competition was the main catalyst behind rate trends, which declined globally in every region and across all major product lines other than casualty.

The UK and the Pacific regions experienced the largest composite rate decreases, at -6% and -8%, respectively, while US rates declined 1%.

Many clients used the increasingly competitive environment to negotiate better terms, enhance coverage, and explore alternative risk transfer solutions such as self-insurance and captives.

Global Insurance Market Index first quarter 2025

Global composite insurance rate change

*Note: All references to rate and rate movements in this report are averages, unless otherwise noted. For ease of reporting, we have rounded all percentages regarding rate movements to the nearest whole number.

Global composite insurance rate change – by region

Global product line trends, Q1 2025:

Property rates declined by 6% globally, with rate movement varying by region. The US and Pacific regions experienced the largest decreases, at -9%; while the UK declined 6% and all other regions experienced low single-digit declines.
Casualty rates increased 4% globally, led by an 8% increase in the US, driven largely by excess/umbrella rates. Other regions varied between 2% increases and 2% decreases.
Financial and professional lines rates decreased 6% globally, declining in every region, including by 10% in the UK and Pacific.
Cyber insurance rates declined 6%, with declines seen in every region, including 10% in Europe.

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

Aerial view of the Bay Bridge in San Francisco, CA

Global Insurance Market Index

US insurance rates

23/04/2025

Insurance rates in the first quarter of 2025 in the US declined by 1%.

Skyline of London over Tower Bridge on the Thames

Global Insurance Market Index

UK insurance rates

04/23/2025

Insurance rates in the UK declined 6% in the first quarter of 2025.

Global Insurance Market Index

Latin America and Caribbean insurance rates

04/23/2025

Insurance rates in the LAC region decreased 2% in the first quarter of 2025.

Berlin, Germany viewed from above the Spree River.

Global Insurance Market Index

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Global Insurance Market Index