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Digital report

Pacific Insurance Market Rates

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

Q2 2025

Pacific rates decline across all major lines

Insurance rates in the Pacific region declined 11% in the second quarter, the highest of any region.

Pacific second quarter 2025

Pacific composite insurance rate change 

Pacific property

Property rates decline for fifth consecutive quarter

Property insurance rates declined 13%, reflecting high levels of insurer competition.

  • Insurers often are competing vigorously, leading to negotiable coverage terms, including increased limits and reduced deductibles.
  • The largest reductions occurred with alternative lead quotes, while quota share arrangements in sectors like real estate saw smaller reductions due to oversupply.
  • Some clients accepted long-term agreements (LTAs) for greater certainty on future rate movements.

Pacific casualty

Casualty rates decline as competition increases

Casualty insurance rates declined 5%, the third consecutive quarter of decline.

  • Insureds experienced increased choice, with insurers competing on price and coverage for both primary and excess placements.
  • Buyers with poorer claims performance or challenging risk profiles may have experienced flat results or slight increases.
  • Insurers revisited organizations for which they previously did not offer quotes.
  • Underwriters had varying responses to per- and polyfluoroalkyl substances (PFAS) exposures across industry sectors and territories.
  • US casualty exposures remained challenging, impacting Australian placements with US-domiciled risks.

Pacific financial and professional lines 

Financial and professional lines rates continue to decline

Financial and professional lines pricing decreased 10%.

  • Retention levels were generally negotiable, especially when competing market terms were offered.
  • Activity in large directors and officers (D&O) liability claims, such as shareholder class actions, was at lower levels than in prior periods.
  • LTAs were commonly available.

Cyber insurance rates decline, capacity abundant

Cyber insurance rates decreased 10%.

  • Insurers sought innovative ways to differentiate offerings, beyond rates.
  • Some insurers implemented cross-line approaches, seeking to participate in cyber programs if already involved in other lines of business.
  • Generative artificial intelligence (AI) is a focal point for insurers. There has been no broad exclusionary language specific to AI, and no significant claims activity.
  • Claims severity and frequency are rising, primarily due to increased ransomware incidents.
  • Government and regulatory emphasis on safeguarding personal information and enhancing cybersecurity continued, including mandatory ransomware reporting requirements under the Australian Cyber Security Act 2024 for organizations with annual turnover exceeding AUD$3 million.

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

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