According to the latest Global Insurance Market Index (GIMI) published by Marsh McLennan (NYSE: MRSH), a global leader in risk, reinsurance, capital, human resources, investment, and management consulting, global insurance rates declined by an average of 5% in the first quarter of 2026, following a 4% decrease in the fourth quarter of 2025.
The first quarter of 2026 marks the seventh consecutive quarter of global rate declines. The continued drop in rates was driven by increased market capacity and growing competition among insurers across most major product lines.
All regions worldwide recorded year-on-year decreases in premium rate indices in Q1 2026. The largest declines were seen in the Pacific region and India, the Middle East and Africa (IMEA), at 12% and 10% respectively. Rates in Latin America and the Caribbean (LAC) and the United Kingdom fell by 8%, while Canada saw a 6% decline, and Europe and Asia each recorded a 5% decrease. In the United States, where rates remained flat in Q4 2025, the overall rate index declined by 1% in Q1 2026.
Key findings:
- Property insurance rates fell globally by 9%, matching the trend seen in Q4 2025. Double-digit declines were recorded in five regions: Pacific (14%), LAC (12%), and 10% declines in the United States, United Kingdom, and IMEA. Rates also decreased in Europe (8%), Canada (6%), and Asia (5%).
- Casualty insurance rates increased by 3% globally (compared to a 4% increase in Q4). This was primarily driven by a second consecutive 9% increase in the United States, where pricing continues to be influenced by high claims severity. In Q1, casualty rates declined in all other regions, particularly for companies without US exposure.
- Financial and professional lines insurance rates decreased by 5% globally in Q1, compared to a 4% decline in Q4. Reductions were recorded across all regions, ranging from 8% in the United Kingdom and 7% in the Pacific and Asia, to 2% in the United States.
- Cyber insurance rates dropped by 5% globally, following a 7% decline in Q4. The largest decrease was recorded in IMEA (14%), with further declines ranging from 11% in LAC to 2% in the United States.
Commenting on the report, John Donnelly, President of Global Placement at Marsh, said: “While the conflict in the Middle East is being closely monitored for its potential impact on insurance markets, current competitive conditions are expected to persist, as insurer profitability remains strong. This is particularly evident in lines such as property insurance, supported by favorable reinsurance conditions and ample market capacity. Amid broader economic uncertainty and inflationary pressures, clients have an opportunity to optimize program structures, increase limits, or adjust deductibles to enhance the stability of their insurance programs in the year ahead.”
Marcin Zimowski, Director in the Strategic Clients Division at Marsh, added: “Price declines appear to be well established in the Polish property insurance market as well. For entities with a strong claims history and a high level of engagement in improving risk quality, rate reductions can exceed the European average decline of around 8%. The absence of very large, systemic losses means that it is currently difficult to find insurance lines unaffected by falling rates. Insurers are also increasingly willing to offer coverage for risks they previously avoided, which further intensifies competition to the benefit of clients.”
Małgorzata Splett-Kulik, Head of FINPRO and Cyber for the CEE region at Marsh, noted: “In financial and cyber insurance lines, Polish clients can still benefit from competitive market conditions when working with both local and international markets. Exceptions include individual clients or sectors that have experienced losses—these will typically pay more for coverage than a year ago. For D&O insurance, this may include certain state-owned companies, while in cyber insurance it applies to clients that have experienced cyber incidents or whose cybersecurity maturity remains insufficient, including assessments based on the so-called 12 risk control measures. Beyond pricing, I expect growing demand for two financial lines products: commercial crime insurance and Employment Practices Liability (EPL). The first is driven by significant recent losses in Europe and rising risks related to e-crime and social engineering, which are only partially covered by cyber policies. Strengthening EPL coverage is also linked to Polish companies preparing for the second phase of implementing the EU Pay Transparency Directive. This can be achieved either by extending D&O coverage to include company claims or by placing a separate EPL policy. Appetite for this risk has already been demonstrated by one of Poland’s leading financial lines insurers, which introduced its EPL offering in April this year.”
Marcin Olczak, Director of Credit Risk at Marsh Poland, added: “Both globally and locally, we are observing aggressive pricing from insurers—rate reductions exceeding 20%—despite a rising number of insolvencies. This trend has persisted for several quarters, and so far there is no visible shift in insurers’ approach. At the same time, our observations and portfolio analysis contradict data presented by the Polish Insurance Association. According to 2025 data, average rates remained largely unchanged year on year, while claim payouts declined. As can be seen, business realities often diverge from tables and reports.”
