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Pacific Insurance Market Rates

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

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Q3 2026

Pacific insurance rates continue to decline across all major lines

Insurance rates in the Pacific region declined 12% in the third quarter, led by property. This was the eleventh consecutive quarter of rate declines. 

Pacific composite insurance rate change 

Pacific property

Property rates stay competitive as capacity expands

Property insurance rates declined 14% in the third quarter, compared with a 15% decline in the prior quarter.

  • Market conditions remained favorable for clients, with most placements oversubscribed as insurers continued to expand capacity on both new and incumbent business.
  • Competition levels remained high, with price the primary differentiator.
  • Coverage also continued to broaden, with insurers offering natural catastrophe sub-limits and lower deductibles.
  • Insureds were increasingly looking to accept long-term agreements (LTAs), generally offered with varied rate movements in the second or third year.

Pacific casualty

Casualty rates move lower amid high levels of competition

Casualty insurance rates declined by 11%; rates have been going down since the fourth quarter of 2024.

  • Insurers sought to write profitable, higher-premium placements, which supported favorable outcomes. Local and international wholesale insurers sought to retain existing primary and excess business and write new accounts.
  • US exposure continued to weigh on results, while poor claims performance remained a pressure point and significant growth in exposures could still lead to smaller reductions or even premium increases.
  • Restructuring programs with alternative layer attachment points and a strategic approach to renewals tended to improve results and generate premium savings.

Pacific financial and professional lines 

Financial and professional lines capacity stays stable

Financial and professional lines pricing decreased 8%, compared with an 11% decrease in the prior quarter.

  • Rate discounting continued across the market. Retention levels and coverage improvements remained negotiable, particularly where multiple insurers offered terms.
  • D&O insurers continued to raise rate concerns, but pricing trends persisted.
  • Insurers showed renewed interest in multi-line deals and pursued in-scope target business. LTAs were widely available and generally offered on favorable terms.

Cyber insurance rates decrease as appetite and capacity remain strong

Cyber insurance rates decreased 8%, compared with 6% in the prior quarter.

  • Strong insurer appetite and available capacity continued across the region. Coverage broadening was available, with insurers also offering additional pre-loss services to differentiate beyond premium alone.
  • Organizations with strong controls, low loss experience, and well-developed incident response capabilities continued to achieve favorable outcomes.
  • Insurers remained focused on AI risk and the use of AI tools, with particular attention on governance, data security, third-party dependencies, and privacy-related exposures.
  • Ransomware and extortion remained the key severity drivers, particularly when incidents led to material business interruption and significant recovery costs.
  • Certain industries, such as law firms, healthcare, and financial institutions, continued to attract heightened underwriting scrutiny due to their handling of sensitive data, confidentiality obligations, and growing reliance on AI-enabled workflows.

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

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Regional analysis

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Global Insurance Market Index

Global Insurance Market Index

10/21/2026

The Global Insurance Market Index (GIMI) 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

10/21/2026

Composite insurance rates in the US decreased in the third quarter.
Skyline of London over Tower Bridge on the Thames

Global Insurance Market Index

UK insurance rates

10/21/2026

Insurance rates in the UK declined by 8% in the third quarter.
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Global Insurance Market Index

Latin America and Caribbean insurance rates

Insurance rates in the region decreased 9% in the third quarter.
Berlin, Germany viewed from above the Spree River.

Global Insurance Market Index

Europe insurance rates

Insurance rates in Europe declined 6% in the third quarter.
Shanghai skyline at night

Global Insurance Market Index

Asia insurance rates

Insurance rates in Asia declined 6% in the third quarter.
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Global Insurance Market Index

Canada insurance rates

Insurance rates in Canada declined 6% in the third quarter.
Skyscrapers in Abu Dhabi, United Arab Emirates.

Global Insurance Market Index

India, Middle East, and Africa insurance rates

21/10/2026

Insurance rates in the third quarter decreased 14% in the IMEA region.

Previous reports

This publication is not intended to be taken as advice regarding any individual situation and should not be relied upon as such. The information contained herein is based on sources we believe reliable, but we make no representation or warranty as to its accuracy. Marsh shall have no obligation to update this publication and shall have no liability to you or any other party arising out of this publication or any matter contained herein. Any statements concerning actuarial, tax, accounting, or legal matters are based solely on our experience as insurance brokers and risk consultants and are not to be relied upon as actuarial, accounting, tax, or legal advice, for which you should consult your own professional advisors. Any modelling, analytics, or projections are subject to inherent uncertainty, and any analysis could be materially affected if any underlying assumptions, conditions, information, or factors are inaccurate or incomplete or should change.

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