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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.

Q1 2025

Pacific rates decline across all major lines

Insurance rates in the Pacific region declined 8% in the first quarter of 2025.

Pacific first quarter 2025

Pacific composite insurance rate change 

Pacific property

Property rates decline for fourth consecutive quarter

Property insurance rates declined 9%.

  • Property insurers actively sought new business and typically offered increased capacity on existing policies as competition continued into 2025.
  • Incumbent underwriters primarily competed on price, with limited changes to retentions, limits, and coverages.
  • Clients with larger limits were encouraged to request alternative retentions, limits, and program structures, generating greater competition for lead terms.
  • Some clients are accepting long-term agreements (LTAs) for certainty on future rate movements.

Pacific casualty

Casualty rates decline as competition increases

Casualty insurance rates declined 2%, the second consecutive quarter of decline.

  • Insurers competed on price, terms, and conditions as the market shifted to an increasingly competitive landscape.
  • Larger accounts typically experienced significant improvements in terms.
  • The approach to underwriting polyfluoroalkyl substances (PFAS) exposures continued to vary across territories and occupations.
  • The challenging conditions in the US casualty market were reflected in Australian placements involving US-domiciled risks.

Pacific financial and professional lines 

Financial and professional lines rates continue to decline

Financial and professional lines pricing decreased 10%.

  • Rate decreases continued across most classes, but at a moderating pace compared to prior quarter.
  • Rates for large directors and officers (D&O) liability programs have moderated from peak levels, allowing for retention adjustments.
    • Large D&O claims, such as shareholder class actions, remained.
    • Strong primary alternatives were generally available for large D&O programs.
  • LTAs were commonly available.

Cyber insurance rates decline, capacity abundant

Cyber insurance rates decreased 8%.

  • Rates trended down, albeit at a slower pace in the quarter.
  • Claims notifications rose due to an increase in cyber incidents, with ransomware, extortion, and fraudulent funds transfers driving claims; long-tail liability claims impacted insurer loss ratios, particularly in the US.
  • Insurers generally enhanced pre-loss offerings, with various risk management services available to policyholders in Australia and London.
  • LTAs continued to be offered, with broad coverage remaining available.

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

Regional analysis

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Global Insurance Market Index

Global Insurance Market Index

04/23/2025

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.
Aerial view of the Bay Bridge in San Francisco, CA

Global Insurance Market Index

US insurance rates

04/23/2025

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.
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Global Insurance Market Index

Latin America and Caribbean insurance rates

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

Europe insurance rates

Insurance rates in Europe declined 1% in the first quarter of 2025.
Shanghai skyline at night

Global Insurance Market Index

Asia insurance rates

Insurance rates in Asia declined 3% in the first quarter of 2025.
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Global Insurance Market Index

Canada insurance rates

Insurance rates in Canada declined 3% in the first quarter of 2025.
Skyscrapers in Abu Dhabi, United Arab Emirates.

Global Insurance Market Index

India, Middle East, and Africa insurance rates

04/23/2025

Insurance rates in the first quarter of 2025 decreased 4% in the IMEA region.

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