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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.

Q4 2025

US composite rates were flat; casualty increases, property decreases

Insurance rates in the US were flat in the fourth quarter, after declining 1% in the prior quarter.

US composite insurance rate change

US property

US property insurance rates decline

Property insurance rates declined by 8%, compared to a 9% decrease in the prior quarter.

Insurer competition intensified as capacity continued to increase from new and existing insurers, due in part to lower reinsurance costs.
Overall, average property rates appeared to ease quarter over quarter due to a lower proportion of Cat-driven placements, which have seen larger rate decreases than the non-Cat portion of the book.
Some insurers offered more favorable policy terms, often aiming to avoid greater rate reductions.
Clients sought cost-effective structural, coverage, and capacity solutions for cost control and balance sheet protection.
Insureds with less favorable histories or that did not meet insurer underwriting guidelines may have experienced less favorable outcomes.
Some insurers showed increased appetite for single-carrier, non-Cat accounts, intensifying rate pressure while generally enabling clients to secure improved coverage terms.

US casualty

Casualty rate increases, due to frequency and severity of claims

Casualty insurance rates increased by 9%, compared to 8% in the prior quarter; excluding workers’ compensation, the increase was 12%.

Workers’ compensation insurers remained focused on rising reserves and medical costs, both of which have the potential to drive future rate increases.
Auto liability continued to face pressure from large jury verdicts, rising auto physical damage repair costs, and increasing attachment points.
General liability (GL) rates moderated, with slight increases typically observed in the real estate, hospitality, and public entities sectors, driven by loss activity.
Insurers generally offered higher retentions and corridor deductibles for auto and GL lines, particularly for larger clients.
GL coverage increasingly includes exclusions for per- and polyfluoroalkyl substances (PFAS), biometric data, and cyber risks, with additional exclusions related to sexual abuse and human trafficking that are becoming common in the real estate and hospitality sectors.
In the umbrella/excess liability market, risk-adjusted rates rose 19%, compared to 16% in the third quarter. Some insurers offered a maximum of $10 million per risk due to adverse developments in the US litigation environment.
- Rates for lead umbrella programs with favorable loss experience increased by 12% to 15%, while those with less favorable loss histories faced rate hikes of 30% or more.
- Limits decreased slightly as little new capacity entered the market. High-excess minimum pricing rose to $10,000 per million; most insurers offered single-risk capacity of $10 million, though some global insurers offered up to $25 million.
- Insurers generally supported umbrella options over single tower capacity due to the frequency of severe claims.
- Third-party litigation funding concerns continued, with renewal pricing observed at 12% to 15% above loss cost trends.
- Rising auto liability claims frequency and severity drove higher attachment points for large fleets, especially in higher-risk states.
- Insurers restricted coverage for certain risks, including PFAS and human trafficking, resulting in increased costs.

US financial and professional lines

Financial and professional lines flat

Financial and professional lines rates were flat, following a 2% decrease in the prior quarter.

Directors and officers (D&O) liability rates increased 1%; insurers resisted the large decreases seen over the past three years.
- Some insurers withdrew capacity where they deemed pricing inadequate.
- Many renewals were flat.
- High excess layers were generally challenging to place compared to previous quarters.
- Excess insurers increasingly moved down insurance program towers to retain more premium.
Fiduciary rates rose 3%, compared to a 2% decrease in the third quarter.
- Ongoing Employee Retirement Income Security Act (ERISA) 401(k) excessive fee litigation and emerging claim theories drove increases in defense costs, settlements, and plaintiff attorneys’ fees.
- Insurers sought minimum class-action retentions of $1 million for larger plans due to escalating legal costs.
- Lawsuits related to pension risk transfer attracted underwriter focus on defined benefit plans.
- New market entrants typically offered lower retentions and proposed to write fiduciary coverage with D&O programs.
Financial institutions rates decreased 2%, consistent with the prior quarter.
Errors and omissions (E&O) rates were flat, down from a 1% increase in the prior quarter.

Cyber rates decrease for 11th consecutive quarter

Cyber insurance rates decreased 3%, the same as in the prior quarter.

Capacity remained stable, with no additional capacity anticipated soon.
Reinsurers intensified focus on technical underwriting, driven by the growing complexity of cyber risks.
Insurers offered reinstatement of policy limits and renewal guarantees, albeit with specific conditions. Cyber physical damage coverage attracted greater interest, subject to underwriting, terms, conditions, and eligibility.
Cyber claims frequency remained generally stable throughout 2025. Ransomware claims where payments were made declined to below 20%, compared to approximately 60% in 2019, reflecting strengthened cybersecurity controls and improved response strategies. Non-breach privacy claims continued to increase claims costs.

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.

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

02/04/2026

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.

Beautiful aerial view of the Sydney Opera house by the bay in Australia. Panoramic view.

Global Insurance Market Index

Pacific insurance rates

Insurance rates in the Pacific region declined 12% in the fourth quarter.

Global Insurance Market Index

Asia insurance rates

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

Canada insurance rates

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

Skyscrapers in Abu Dhabi, United Arab Emirates.

India, Middle East, and Africa insurance rates

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

US Insurance Market Rates