Marsh’s latest Global Insurance Market Index recorded a 3% fall in global commercial insurance rates in Q1 2025. This follows the 2% dip in Q4 2024 and is the third consecutive quarterly fall after seven years of rising rates. In the UK, rates were down by 6%. Marsh said the softening market was due to increased capacity from both new entrants and existing providers.

John Donnelly, president, global placement at Marsh, said: “Driven by increased insurer competition and favourable reinsurance pricing, global commercial insurance trends continued to improve for our clients, on average, in the first quarter of 2025, with the exception of US casualty.

“We expect the overall trend to continue, and for insurer competition to intensify, barring unforeseen changes in conditions. We are committed to helping clients manage costs, protect their balance sheets, and successfully navigate and benefit from the continued improvement in market conditions.”