The newly published Global Insurance Market Index by Marsh (Marsh & McLennan) shows that global commercial insurance rates, after rising for seven years, have posted their fifth consecutive quarterly decrease in the third quarter of 2025.

The global insurance broker and risk advisor says global commercial insurance rates fell by four per cent in the third quarter of 2025, on average. This follows a near-identical four per cent drop reported in the second quarter of the year.

In Canada, rates dropped by three per cent, compared to four per cent in the previous quarter. They add that rates for property, cyber and financial and professional insurance declined in every region, globally.

“Rate decreases were experienced in all regions and most product lines,” they state. “Q3 marks the fifth consecutive global quarterly decrease following seven years of quarterly increases and is a continuation of the moderating rate trend first recorded in Q1 2021.” 

Broken down, global casualty rates increased three per cent, property rates declined eight per cent, financial and professional lines rates decreased five per cent globally and cyber insurance rates decreased six per cent. The report says significant capacity was available during the quarter and competition among new and existing insurers lead to generally more favourable terms and broader coverage options for clients.

When looking at the measure of commercial insurance rate changes at renewal in Canada, they note that rates declined in all major product lines. 

Property insurance rates declined three per cent, casualty insurance rates declined three per cent (the ninth consecutive quarter of declines in the segment, they note, adding that clients with U.S. exposure typically enjoyed less favourable conditions), financial and professional lines rates declined five per cent and cyber insurance rates decreased three per cent.

U.S. tariff risks 

Property rate decreases were attributed to intense competition in the space, as incumbent insurers increased capacity and new insurers pursued new business. “Insurers and clients alike monitored U.S. tariff risks, including higher raw material and rebuild costs, longer indemnity periods, supply chain disruptions, export/import challenges and currency effects,” the report states.

They add that wildfire coverage, pricing and attachments in Canada are increasingly reviewed annually. They note that coverage is not guaranteed from year to year. Exclusions and sub-limits are also being imposed for polyfluoroalkyl substances (PFAS) exposure, climate change, wildfire, energy supply failure, mental anguish, sexual abuse, biometrics, human trafficking, cyber and greenwashing, “reflecting evolving risk landscapes,” they write.

Finally, clients seeking cyber coverage were often able to obtain improved coverage and reduced retentions at renewal. “Reductions of three per cent to 10 per cent in excess layers were common even when primary layers renewed flat. New entrants and existing insurers alike targeted new business,” the report states. “Increased capacity spanned both excess and primary layers, supported by new products from several insurers. Coverage generally expanded, with removal of coinsurance, enhanced sub-limits and more frequent inclusion of cybercrime sub-limits; lower retentions typically were negotiable for insureds with strong cyber controls.”