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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.

Q4 2025

Pacific rates decline across all major lines

Insurance rates in the Pacific region declined 12% in the fourth quarter, the highest of any region.

Pacific composite insurance rate change

Pacific property

Property rates decline for the seventh consecutive quarter

Property insurance rates declined 14%, driven by strong insurer competition.

Insurers generally quoted new business and expanded existing lines, offering negotiable terms such as higher limits, reduced deductibles, and removal of mandatory endorsements.
The largest rate reductions occurred in distressed sectors with historically high-rate increases and capacity limitations.
International insurers provided capacity that contributed to rate declines.
Long-term agreements (LTAs) were offered, with varied rate adjustments for years two and three.

Pacific casualty

Casualty rates decline

Casualty insurance rates declined 9%, the fifth consecutive quarter of decline.

Alternative layering structures drove premium savings and generally improved outcomes for clients.
High levels of competition across all sectors for primary and excess layers provided clients with more options.
The challenging US casualty market influenced Australian placements with US-domiciled risks.

Pacific financial and professional lines

Financial and professional lines rates decline, continuing prior quarter trends

Financial and professional lines pricing decreased 8%.

Some insurers expressed concern about any further rate decreases.
Retention levels and coverage improvements were generally negotiable.
LTAs were available.
Claims activity remained at low levels.

Cyber insurance rates decline, clients review limits

Cyber insurance rates decreased 7%.

Insurers considered LTAs for 2026, with a preference for upfront premium rollovers rather than pre-agreed reductions.
Many clients either expanded coverage or reinvested savings to increase cyber limits.
Generative AI, backup security, and data protection practices were key concerns for insurers.
Claims notifications and business interruption impacts increased in 2025, following high-profile cyberattacks across retail, automotive, and technology supply chains.
Cyber physical damage coverage received renewed attention within property programs for certain malicious cyber events.

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

Global Insurance Market Index

02/04/2026

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

Aerial view of the Bay Bridge in San Francisco, CA

Global Insurance Market Index

US insurance rates

02/04/2026

Insurance rates in the US were flat in the fourth quarter.

Skyline of London over Tower Bridge on the Thames

Global Insurance Market Index

UK insurance rates

02/04/2026

Insurance rates in the UK declined 7% in the fourth quarter of 2025.

Global Insurance Market Index

Latin America and Caribbean insurance rates

Insurance rates in the region decreased 7% in the fourth quarter.

Berlin, Germany viewed from above the Spree River.

Global Insurance Market Index

Europe insurance rates

Insurance rates in Europe declined 6% in the fourth quarter.

Global Insurance Market Index

Asia insurance rates

Insurance rates in Asia declined 5% in the fourth quarter.

Global Insurance Market Index

Canada insurance rates

Insurance rates in Canada declined 7% in the fourth quarter.

Skyscrapers in Abu Dhabi, United Arab Emirates.

Global Insurance Market Index

India, Middle East, and Africa insurance rates

02/04/2026

Insurance rates in the fourth quarter decreased 10% in the IMEA region.

Pacific Insurance Market Rates