Global commercial insurance rates fell 4%, on average, in the second quarter of 2025 following a 3% decline in Q1
2025, according to the latest Global Insurance Market Index released by Marsh, the insurance brokerage business of Marsh McLennan.
The exception to the rule of the trend toward softening rates was the casualty market, which once again saw a
verage rates increase by 4% globally during the second quarter (level with Q1 2025 and Q4 2024).
This was led by a 9% increase in U.S. casualty rates, which Marsh attributed to the frequency and severity of c
asualty claims, many of which are characterized by large, so-called “nuclear” jury awards. During Q1 2025, U.S. casualty
rates increased by 8% and rose by 7% in Q4 2024. (Editor’s note: Nuclear verdicts are defined as jury awards that exceed $10 million).
“Mounting competition among insurers with ambitious growth targets is providing reduced pricing and broader coverage options. Against this backdrop, risi
ng U.S. casualty rates are a concern for clients,” commented John Donnelly, president, Global Placement, Marsh, in a statement.
Read more: Excessive Litigation Causes Surge in Liability Insurance Costs: Marsh McLennan CEO
Q2 is the fourth consecutive quarter that saw a drop in composite insurance rates following seven years of qu
arterly increases and is a continuation of the moderating rate trend first recorded in Q1 2021, said Marsh, explaining
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that increasing insurer competition is the main catalyst behind rising market capacity, more favorable rates, and broader coverage options.
“In the second quarter, clients generally benefited both from reductions in pricing and improved coverage optio
ns. Major insurers had ambitious growth targets and generally experienced favorable conditions, including reinsurance pricing, which contributed to high levels of competition,” Marsh said in the report.
All global regions experienced year-over-year composite rate decreases in Q2 – of between 4% and 11% – except for the U.S., where the rate was flat.
The Pacific and the UK regions experienced the largest composite rate decreases, at 11% and 6%, respectively. Rates d
eclined in Asia; Latin America and the Caribbean (LAC); and India, Middle East, and Africa (IMEA) by 5%; and in Canada and Europe by 4%.