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Global commercial insurance rates fall 6% in Q2, with US casualty up
Property premiums dropped 12% globally in Q2 2026, while casualty rates rose 2% on US claims severity and litigation pressures.
Global commercial insurance rates declined by an average of 6% in the second quarter of 2026, following a 5% drop in Q1, according to Insurance Journal citing Marsh’s latest Global Insurance Market Index (GIMI). Marsh said property rates fell 12% in Q2, while casualty rates increased 2%, largely tied to ongoing claims severity and litigation pressures in the US.
The broker said Q2 2026 marked the eighth consecutive quarter of rate decreases, supported by abundant capacity, strong insurer profitability, excess capital, favorable reinsurance conditions, and higher investment returns. Marsh also noted competition across major product lines, with all global regions showing year-over-year composite rate decreases in Q2.
Marsh reported the largest composite rate decrease in the India, Middle East and Africa region at 16%, followed by the Pacific at 13% and Latin America and the Caribbean at 9%. By comparison, composite rates declined in the UK by 8%, Canada by 7%, Europe by 6%, and Asia by 5%, while the US composite rate fell 2% in Q2 2026 after declining 1% in Q1.
Insurance Journal also said Marsh observed that broader coverage, higher limits, and reduced retentions were often available to clients. In a statement, Marsh said underwriting scrutiny eased somewhat, but focus remained on catastrophe, casualty severity, and systemic risks, and it expects current conditions to persist absent a severe northern hemisphere storm season or major natural catastrophe string.