Commercial property is leading pricing weakness in the Australia-dominated Pacific region, with rates declining for a fifth consecutive quarter, the latest Marsh Global Insurance Market Index shows.

Property cover rates fell 13% in the June period, accelerating from drops of 9% and 8% in the two preceding quarters amid high levels of insurer competition. 

“Insurers often are competing vigorously, leading to negotiable coverage terms, including increased limits and reduced deductibles,” Marsh said.

Commercial rates overall in the region fell 11% in the second quarter, the largest drop worldwide.

Casualty rates eased 5%, with insureds enjoying greater choice as insurers competed on price and coverage for primary and excess placements.

Buyers with poor claims performance or challenging risk profiles may have had flat rates or slight increases, while US casualty challenges affected Australian placements with US-domiciled risks, Marsh says.

Financial and professional lines dropped 10% as a trend of double-digit drops continued, while cyber was also down 10% amid abundant capacity.

Globally, commercial insurance rates fell 4% on average in the quarter following a 3% decline in the first three months.

“Mounting competition among insurers with ambitious growth targets is providing reduced pricing and broader coverage options,” global placement president John Donnelly said. “Against this backdrop, rising US casualty rates are a concern for clients.”

Mr Donnelly says as geopolitical issues including tariffs and conflicts create challenges and uncertainty, organisations can access many attractive traditional and alternative financing strategies to manage risks.

The report is available here.