Q2 Global Commercial Rates Keep Dropping, Except for Casualty

By L.S. Howard

Global commercial insurance rates dropped by 6%, on average, in the second quarter of 2026, following a 5% decline in Q1 2026, according to Marsh’s latest Global Insurance Market Index (GIMI).

Property rates declined by 12% in the second quarter, while casualty rates increased 2%, driven largely by ongoing claims severity and litigation pressures in the U.S. (Editor’s note: Marsh’s Global Insurance Market Index skews toward larger account business.)

Marsh said that Q2 2026 marks the eighth consecutive quarter of rate decreases, fueled by abundant capacity, strong insurer profitability, a surplus of capital, favorable reinsurance conditions, and higher investment returns.

Strong insurer competition is being seen across all major product lines with all global regions experiencing year-over-year composite rate decreases in Q2 2026, Marsh indicated.

The India, Middle East and Africa (IMEA) region experienced the largest composite rate decrease across all the regions, at 16%, while the Pacific and Latin America and Caribbean (LAC) regions declined by 13% and 9%, respectively. In the UK, rates declined by 8%, followed by Canada at 7%, Europe by 6%, and Asia by 5%. The overall composite rate in the U.S.–which declined by 1% in Q1 2026–fell by 2% in Q2 2026.

Terms and Conditions Ease

In addition to the average global rate decreases, Marsh noted that broader coverage, higher limits, and reduced retentions were often available to clients. “Levels of underwriting scrutiny tended to ease, although focus remained on catastrophe, casualty severity, and systemic risks. Risk differentiation continued to increase, with underwriting outcomes increasingly driven by exposure quality and risk management,” the broker said.

“Current market conditions are likely to persist absent a severe northern hemisphere storm season or string of major natural catastrophes,” commented John Donnelly, president, Global Placement, Marsh Risk, in a statement. “This is likely to create additional opportunities for clients to improve coverage and refine program design, that may better position them for future market changes.”

Property rates declined by 12% globally, following 9% decreases in Q1 2026 and Q4 2025. Double-digit decreases were recorded in five regions: IMEA (19%); Pacific (15%); LAC (14%); the U.S. (13% in its eighth consecutive quarter of rate declines); and the UK (11%). During Q2, rate decreases were also recorded in Europe (9%), Canada (8%), and Asia (5%).

Catastrophe-exposed programs in the U.S.–greater than $1 million in premium–saw rates decline by 20%, while rates for non-catastrophe programs of less than $1 million in premium dropped by 10%, Marsh said.

Casualty was the only major product line to record an average global rate increase during the quarter (2% in Q2 versus 3% in Q1 2026), driven by conditions in the U.S. market. Indeed, all regions saw casualty rate drops except for the U.S., where casualty rates rose by 7%, compared to 9% increases in both Q1 2026 and Q4 2025, Marsh said. “U.S.-exposed risks continued to face heightened underwriting scrutiny and pricing pressure across multinational programs. While still available, capacity was increasingly selective, with a strong focus on risk quality and program structure.” (See U.S.-specific casualty chart on page 10.)

Excluding workers’ compensation, U.S. casualty rates increased by 11%, said Marsh, noting that WC continued to see the most capacity and highest levels of competition in the U.S. casualty sector.

Financial and professional lines (FINPRO) rates decreased 3% globally, compared to a 5% decrease in Q1 2026. “Market conditions continued to stabilize following prolonged rate reductions, and underwriting became more selective. FINPRO rate reductions were recorded across all regions except the U.S., where prices increased by 1%, compared to a 2% decline in the previous quarter. Directors and officers (D&O) liability rates in the U.S. increased by 1%, following a 3% decline in the prior quarter.

Cyber insurance rates declined by 4% globally–the twelfth consecutive quarter of decreases–following a 5% decrease in Q1. The largest decline was in IMEA, at 14%, followed by reductions ranging from 10% in LAC to 2% in the U.S. (level in the U.S. with Q1 2026).

“U.S. cyber rates have been declining since the second quarter of 2023,” Marsh said.

Editor’s Note: All references to rate and rate movements in this report are averages, unless otherwise noted. For ease of reporting, Marsh has rounded all percentages regarding rate movements to the nearest whole number.

Topics Commercial Lines Business Insurance Casualty