Global Insurance Price Trends: First Quarter of 2025
According to the latest ‘Global Insurance Market Index’ released by Marsh, the first quarter of 2025 witnessed a 3% decline in global commercial insurance prices.
Marsh, a leading insurance broker and risk advisor, has published its ‘Global Insurance Market Index’ for Q1 2025. The data reveals a 3% reduction in global commercial insurance prices, marking the third successive quarter of decline, a noteworthy shift after a seven-year climb. Since the first quarter of 2021, prices have been stabilizing, largely due to intensified competition in the insurance market, fueled by increased capacity from both existing and new reinsurers.
This trend is particularly pronounced in property, financial, professional, and cyber insurance sectors, where insurers are actively seeking to broaden their portfolios. In the first quarter, pricing fell across all regions on an annual basis, with significant decreases of 8% in the Pacific, 6% in the UK, 4% in India, Middle East and Africa (IMEA), 3% in Asia and Canada, 2% in Latin America and the Caribbean (LAC), and 1% in both the US and Europe.
Some of the key insights from the report include:
- Property Insurance: Prices dropped by 6% in Q1 2025, following a 3% decline in the last quarter of 2024. The largest price reductions occurred in the US and Pacific regions at 9%, followed by 6% in the UK, 4% in IMEA and LAC, 3% in Canada, and 1% in Europe and Asia. These adjustments are attributed to the robust financial performance of insurers and excess capacity due to lower reinsurance costs.
- Liability Insurance: Prices rose by 4% in the first quarter of 2025, consistent with the previous quarter. This increase was primarily driven by an 8% rise in the US, stemming from a heightened frequency and severity of claims. In contrast, other regions experienced either modest increases or price reductions.
- Financial and Professional Liability: Consistent with the previous quarter, prices declined by 6%. This downward trend was observed globally, spurred by strong market competition and abundant capacity.
- Cyber Insurance: Prices saw a 6% decrease globally, following a 7% reduction in the prior quarter. This trend reflects insurers adopting more proactive risk management strategies. Many policyholders are opting to utilize premium savings to enhance policy coverage, reduce deductibles, and increase coverage limits.
Yeşim Aksüt, CEO of Marsh Turkey, remarked on the findings: “The first quarter of 2025 saw global commercial insurance trends favoring our clients, thanks to heightened competition among insurers and favorable reinsurance costs, with the exception of liability insurance in the US. We anticipate the overall trend to persist, leading to an even more competitive insurance market, barring unforeseen changes. Our commitment is to assist our clients in managing costs effectively, safeguarding their balance sheets, and capitalizing on market recovery.”
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