Market conditions are allowing businesses to enhance their risk coverage, Marsh says, as commercial insurance rates continue to slide.

The global broker’s latest commercial rates index shows insurance pricing worldwide fell 5% in the September quarter. In the Australia-led Pacific region, prices dropped 12%.

But not every business has used the soft market to review cover.

“Geopolitical uncertainty and broader economic concerns remain part of the operating environment, and many buyers were more inclined to retain premium savings rather than reinvesting them in additional coverage,” Marsh global placement president John Donnelly said.

“The current environment, however, continues to present opportunities for insureds to enhance their program structures.”

Mr Donnelly says market conditions remained broadly unchanged in the quarter, with continued rate pressure across much of the market.

“A benign US hurricane season contributed to favourable underwriting results, helping sustain capacity and high levels of competition across much of the market.”

Ample capacity continued to drive down rates, according to the Marsh pricing index.

The 5% global drop in the July-September period was the ninth straight quarter of reductions, as underwriting appetite stayed strong across nearly all regions and lines of coverage.

“Global property rates, which saw the largest decline (10%) across major lines of coverage, were influenced by the timing of catastrophe-exposed renewals,” Mr Donnelly said.

Marsh says ample capacity and lower reinsurance costs affected both prices and terms for property renewals.

In the Pacific region, prices have now fallen for 11 straight quarters.

The 12% drop in Australian rates was led by a 14% fall in property pricing, which has been on a downward trend since the second quarter of 2024.

“Property rates stay competitive as capacity expands,” Marsh said.

“Coverage also continued to broaden, with insurers offering natural catastrophe sublimits and lower deductibles.”