Global commercial insurance rates fall by an average of 6 per cent in the second quarter of 2026, marking the eighth consecutive quarter of rate decreases, according to the latest Global Insurance Market Index from Marsh. The Q2 decline follows a 5 per cent fall in Q1 2026. Property rates decline by 12 per cent over the quarter, while casualty rates rise by 2 per cent, driven largely by continued challenges in the US. Marsh attributes the sustained softening to abundant capacity and strong insurer competition across all major product lines. Strong insurer profitability, a surplus of capital, lower reinsurance costs and higher investment returns are intensifying competition and contributing to lower rates, the broker says. For captive owners and prospective sponsors, the report identifies a divergence in how buyers are deploying the savings. Marsh notes that while economic uncertainty has led many buyers to retain premium savings, many organisations are also continuing to invest in alternative risk strategies including captives. Sustained soft market conditions have historically slowed captive formations, and the finding suggests appetite for structural risk financing is holding up through the current cycle. All global regions record year-on-year composite rate decreases in Q2 2026. India, the Middle East and Africa post the largest composite decrease at 16 per cent, followed by the Pacific at 13 per cent and Latin America and the Caribbean at 9 per cent. UK rates fall by 8 per cent, Canada by 7 per cent, Europe by 6 per cent and Asia by 5 per cent. The US composite rate falls by 2 per cent, having declined by 1 per cent in Q1 2026. Property rates fall 12 per cent globally, following decreases of 9 per cent in both Q1 2026 and Q4 2025. Double-digit decreases are recorded in five regions: India, the Middle East and Africa at 19 per cent; the Pacific at 15 per cent; Latin America and the Caribbean at 14 per cent; the US at 13 per cent; and the UK at 11 per cent. Decreases are also recorded in Europe at 9 per cent, Canada at 8 per cent and Asia at 5 per cent. Casualty rates increase 2 per cent globally, down from a 3 per cent increase in Q1. All regions record decreases except the US, where casualty rates rise by 7 per cent, compared with 9 per cent in Q1. US-exposed risks continue to face heightened underwriting scrutiny and pricing pressure. Capacity remains available but is increasingly selective, with a strong focus on risk quality and programme structure. US casualty remains the line where captive and alternative risk structures are most frequently deployed in response to pricing pressure. Financial and professional lines rates decrease 3 per cent, compared with a 5 per cent decrease in the prior quarter. Market conditions continue to stabilise following prolonged rate reductions, and underwriting becomes more selective. Reductions are recorded across all regions except the US, where rates rise by 1 per cent against a 2 per cent decrease in the previous quarter. Cyber insurance rates decline by 4 per cent globally, the twelfth consecutive quarter of decreases, following a 5 per cent decrease in Q1. The largest decline is in India, the Middle East and Africa at 14 per cent, with reductions ranging from 10 per cent in Latin America and the Caribbean to 2 per cent in the US. John Donnelly, president of global placement at Marsh Risk, says: “In many markets, in addition to competing based on price, insurers are seeking to differentiate themselves through broader coverage, expanded policy terms, and lower deductibles. While economic uncertainty has led many buyers to retain premium savings, many organisations are also continuing to invest in alternative risk strategies, including captives.” Donnelly adds: “Current market conditions are likely to persist absent a severe northern hemisphere storm season or string of major natural catastrophes. This is likely to create additional opportunities for clients to improve coverage and refine programme design, that may better position them for future market changes.”
