Commercial rates in the Australia-dominated Pacific region fell 8% in the first quarter, as declines in property gathered pace, the latest Marsh Global Insurance Market Index shows. 

Pacific rates overall have eased for five straight quarters, with an 8% slide also recorded in the fourth quarter of last year. 

The latest index shows declines of 9% for property, compared to 8% in the previous quarter, with insurers actively seeking new business and typically offering increased capacity on existing policies as competition continued into this year. 

Casualty rates in the region decreased 2% and financial and profession lines fell 10%, with the pace of decline slowing from 12% in the December period. Cyber rates fell 8%. 

Global insurance rates fell 3% on average following a 2% decline in the fourth quarter, marking the third consecutive quarterly decrease following seven years of increases. 

“Driven by increased insurer competition and favourable reinsurance pricing, global commercial insurance trends continued to improve for our clients, on average, in the first quarter of 2025, with the exception of US casualty,” president global placement John Donnelly said. 

“We expect the overall trend to continue, and for insurer competition to intensify, barring unforeseen changes in conditions.” 

Marsh says the heightened global competition reflects increased capacity from existing providers and some new entrants. 

“This is particularly evident in property, financial and professional, and cyber lines, where insurers are actively seeking new business opportunities and expanding their offerings,” it says. 

Rates fell 6% in the UK, 4% in India, the Middle East and Africa, 3% in Asia and Canada, 2% in Latin America and the Caribbean and 1% in the US and Europe. 

Property rates declined 6% globally, following a 3% decline in the fourth quarter. 

Mr Donnelly says US casualty, where rates rose 8% in the March quarter, was the main product line bucking the trend, contributing strongly to a 4% global increase. 

Available capacity tightened due largely to the severity of claims and large jury decisions, sometimes called “nuclear verdicts”, with underwriters continuing to reduce line sizes. US casualty market conditions typically impact rates and coverage in other regions. 

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