Strong insurer capacity and competition give businesses greater leverage during renewals.
Global commercial insurance rates fell by 5% in the third quarter of 2026 as strong insurer capacity and competition continued to put pressure on premiums, according to Marsh.
The decline followed a 6% drop in the second quarter and marked the ninth consecutive quarter of falling rates, according to Marsh’s Global Insurance Market Index.
Property insurance rates fell by 10% globally, whilst casualty rates rose by 1%, mainly due to continued pricing pressure in the US market.
Insurers’ strong profitability, surplus capital, lower reinsurance costs and higher investment returns have intensified competition across major insurance lines.
Buyers renewing policies during the quarter were also able to secure broader coverage, higher limits, lower deductibles and longer-term agreements.
All regions recorded year-on-year declines in composite commercial insurance rates.
India, the Middle East and Africa (IMEA) saw the largest fall, at 14%, followed by the Pacific at 12% and Latin America and the Caribbean at 9%.
Rates fell by 8% in the UK and 6% in Canada, Europe and Asia. In the US, the decline slowed to 1% in the third quarter, from 2% in the previous quarter.
John Donnelly, president of Global Placement at Marsh Risk, said geopolitical uncertainty and broader economic concerns had led many insurance buyers to retain premium savings rather than spend them on additional coverage.
He said the market conditions continued to give businesses opportunities to improve their insurance programmes and consider alternative risk management strategies.
Property rates declined across all regions, with double-digit falls in IMEA at 15%, the Pacific at 14%, Latin America and the Caribbean at 13%, the UK at 11% and the US at 10%. Rates also fell by 9% in Europe, 8% in Canada and 7% in Asia.
Casualty rates increased by 1% globally, down from a 2% rise in the second quarter. The US was the only region to record an increase, with rates rising by 6%, compared with 7% in the previous quarter.
Risks exposed to the US continued to face closer underwriting scrutiny and higher prices.
Although capacity remained available, insurers were more selective, offering smaller coverage limits and less price relief, including for programmes outside the US with exposure to the market.
Financial and professional lines rates fell by 3%, extending their decline to 17 consecutive quarters. Rates decreased moderately across all regions except the US, where they rose by 1%.
Directors and officers (D&O) insurance remained a focus for insurers, although some buyers secured double-digit rate reductions.
Cyber insurance rates fell by 4% globally for the 13th consecutive quarter. US rates were flat after an extended period of declines, whilst other regions continued to record reductions.
Additional capacity from new insurers also allowed buyers to broaden coverage and lower retention levels.
Donnelly said favourable underwriting results, partly supported by a relatively quiet US hurricane season, had helped sustain market conditions. Strong capacity, competition and favourable reinsurance conditions continued to create opportunities for insurance buyers.