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.

Q3 2025

Pacific rates decline across all major lines

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

Pacific third quarter 2025

Pacific composite insurance rate change

Pacific property

Property rates decline for sixth consecutive quarter

Property insurance rates declined 14%.

Insurers generally offered negotiable terms, including higher limits, reduced deductibles, and removal of mandatory endorsements.
The largest rate reductions occurred in previously capacity-constrained, distressed sectors with historically high rate increases, including food and beverage, mining, and power, as well as catastrophe-exposed regions.
International insurers provided capacity, further driving 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 7%, the fourth consecutive quarter of decline.

Rates for some insureds with losses or growth in their exposures remained flat or increased.
Underwriting for per- and polyfluoroalkyl substances (PFAS) exposure varied; coverage availability was limited in certain sectors and regions.
The challenging US casualty market influenced Australian placements with US-domiciled risks.

Pacific financial and professional lines

Financial and professional lines rates decline for tenth consecutive quarter

Financial and professional lines pricing decreased 10%.

Some insurers expressed concerns about continuing rate declines.
Retention levels and coverage improvements were generally negotiable.
LTAs were available.

Cyber insurance rates decline, clients review limits

Cyber insurance rates decreased 10%.

Insurers considered LTAs with single-digit reductions for 2026, though pre-agreed reductions were harder to secure.
17% of clients used premium savings to purchase increased cyber limits.
Generative AI, backup security, and data protection practices were key concerns for insurers.
Claims frequency declined, but ransomware claim severity increased.

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

Global Insurance Market Index

10/22/2025

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

10/22/2025

Insurance rates in the third quarter in the US declined by 1%.

Skyline of London over Tower Bridge on the Thames

Global Insurance Market Index

UK insurance rates

10/22/2025

Insurance rates in the UK declined 6% in the third quarter 2025.

Global Insurance Market Index

Latin America and Caribbean insurance rates

Insurance rates in the LAC region decreased 6% in the third quarter.

Berlin, Germany viewed from above the Spree River.

Global Insurance Market Index

Europe insurance rates

Insurance rates in Europe declined 4%, the same as the prior quarter.

Global Insurance Market Index

Asia insurance rates

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

Global Insurance Market Index

Canada insurance rates

Insurance rates in Canada declined 3% in the third quarter.

Skyscrapers in Abu Dhabi, United Arab Emirates.

Global Insurance Market Index

India, Middle East, and Africa insurance rates

22/10/2025

Insurance rates in the third quarter decreased 5% in the IMEA region.

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Pacific Insurance Market Rates