Business Relief as Insurance Rates Decline Worldwide

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

Across the globe, varying trends emerged. United Kingdom-based rates decreased by 5%, while rates across Asia saw a 3% decline. Both Europe and Canada experienced a modest dip of 2%. However, the scenario was different across the Americas; the United States saw its rates remain stable, and Latin America encountered a slight 1% increase.

The Global Insurance Market Index highlights this as the second consecutive quarter where commercial rates have collectively declined, noting a 2% drop for the October to December timeframe.

John Donnelly, Marsh's global head of placement, emphasised the importance of these rate changes, saying, “The softening of rates across property, financial lines, and cyber is a positive development for clients, while the challenges in other areas of the market, particularly in US casualty, are acute.” This viewpoint underscores that while the general trend is positive for clients, specific market segments may still face hurdles.

Focusing on the Pacific market, which remains heavily influenced by Australian renewals, the 8% decrease facilitates a client-friendly environment, continuing what is now a four-quarter streak of rate decreases for commercial clients.

Breaking down by insurance type in the Pacific, property rates fell by 8%, casualty rates declined by 2%, and financial and professional lines saw a significant 12% decrease. Marsh signifies that this trend is partially due to insurers prioritising premium growth, leading to intensified competition. Nonetheless, accounts that were impacted by claims still faced careful evaluations, with insurers hesitant to implement substantial price reductions.

The financial and professional lines saw heightened competition, especially in directors' and officers' liability risks. Cyber rates, interestingly, only saw increases if there were major shifts in the underlying risk profiles. This indicates a continued competitive atmosphere in specific lines despite overarching declines.

The original data for this report was sourced from Marsh's Global Insurance Market Index, showcasing a dynamic period for global insurance, with implications for businesses across various regions and sectors.

Published:Tuesday, 11th Feb 2025
Source: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

Share this news item:

Insurance News

Clear

ATA Challenges Productivity Commission's Proposal to Double Truck Fuel Tax

01 Mar 2026: Paige Estritori

The Australian Trucking Association (ATA) has expressed strong opposition to the Productivity Commission's proposal to more than double the tax on truck fuel. The plan suggests phasing out fuel tax credits for trucking operators, effectively increasing the fuel tax rate from the current 32.4 cents per litre to 66.1 cents per litre by 2035. - read more

PERILS Revises Loss Estimate for November 2025 Storms in Queensland and NSW

01 Mar 2026: Paige Estritori

In a recent update, catastrophe data provider PERILS has increased its insurance industry loss estimate for the severe convective storms that struck Queensland and New South Wales between November 21 and 27, 2025. The revised estimate now stands at AU$2.95 billion, marking an 11% rise from the initial figure of AU$2.663 billion released in January 2026. - read more

Federal Court Denies Truck Driver's Insurance Claim Against Superannuation Fund

01 Mar 2026: Paige Estritori

In a recent legal decision, the Federal Court dismissed a truck driver's insurance claim against the Australian Retirement Trust. The case centred on whether the driver had active insurance coverage through his superannuation account, particularly concerning the 'dangerous occupation exception.' - read more

AIA Australia Introduces Enhancements to Priority Protection Life Insurance

28 Feb 2026: Paige Estritori

AIA Australia has announced significant updates to its Priority Protection life insurance suite, effective from 9 November 2025. These enhancements are designed to simplify discounts, improve policy clarity, and support premium affordability for policyholders. - read more

Decline in Life and Income Protection Insurance Premiums Benefits Australians

28 Feb 2026: Paige Estritori

Recent data indicates a notable decline in life and income protection insurance premiums across Australia, providing consumers with more affordable coverage options. According to the latest Direct Life Insurance Report from Rainmaker Information, direct life premiums have decreased by 7% since 2024. Similarly, direct income protection premiums have seen significant reductions, with average premiums for waiting periods of 30 days and 90 days decreasing by 12% and 13%, respectively. - read more

Click for more Insurance News