In the third-quarter of 2025, global property insurance rates accelerated their decline, with broker Marsh again highlighting increasingly favourable conditions for buyers, as the insurance market is increasingly influence by the softening of reinsurance pricing.In its latest report on global commercial insurance rates, Marsh explains that lower reinsurance pricing is cascading through to reduce rates for insurance buyers, with the United States property market seeing a consistent pace and some regions around the world seeing the decline accelerating.John Donnelly, President, Global Placement, Marsh, commented, “With the exception of US casualty, clients are benefiting not only from lower rates but also from opportunities to negotiate improved terms and broader coverage.These rate trends remain consistent in a market characterized by ample capacity.

Barring unforeseen changes in conditions, we expect these trends to continue and look forward to helping clients to take advantage of the competitive insurance market.” Donnelly further explained on Q3 2025 commercial insurance market conditions, “In general, there was significant available capacity and a high level of competition among insurers for business.At the same time, reinsurance pricing was also more favorable for insurers, contributing to the downward pressure on rates.“Every year, insurers keep a keen eye on the Noth America hurricane season, which holds the potential to produce market-shifting levels of property damage.

The season runs from June 1 through November 30; damaging storms are possible outside that timeframe but are less likely.To date in 2025 there have been few storms, and none of significant note.” Donnelly highlighted that property insurance rates declined globally, with every region seeing different levels of price reduction rates.He believes that the situation is not likely to change in the near future.

“The current period follows what had been several years during which rates generally increased.As insurers continue to vigorously compete for business, we expect the overall trends seen in the third quarter to continue, barring unforeseen changes in conditions,” Donnelly said.Globally, property insurance rates declined by 8% in Q3 2025, a slightly acceleration from .

Rates fell fastest in the Pacific region, with a 14% decline in the quarter, while the United States and Latin America and Caribbean regions saw a 9% property insurance rate decline and other regions varied between 3% and 7%.Marsh explained that significant capacity is available currently and that this, alongside cheaper reinsurance, is driving greater competition among insurers around the world, both established and newer entrants.“A continuing increase in insurer competition was the main catalyst behind rate trends, which declined globally in every region,” the broker said.

For the broker’s clients, this is a positive situation, as they “used the competitive environment to negotiate better terms, enhance coverage, and explore alternative risk transfer solutions,” Marsh further stated.In the key United States marketplace, property insurance rates led the charge down.Improved insurer performance and lower reinsurance costs are helping to fuel competition between insurers in the US marketplace.

Perhaps notably, some insurers are now offering clients more favourable property insurance policy terms to secure business and counteract rate declines, Marsh explained.The US commercial property insurance market has now seen rates decline by 9% on average in each of the three-quarters of 2025 so far, at which pace some of the gains of recent years are being eroded, it now seems.With reinsurance still softening, especially in higher-layer property catastrophe risks, the insurers have a chance to capitalise on this to elevate their competitiveness even more, while they can also lock-in longer-term protection using insurance-linked securities (ILS) instruments such as catastrophe bonds.

There is still differentiation in the commercial property insurance market though, with buyers with a poor loss history or lower quality submissions not getting the declines seen by those in a better standing, Marsh said.Europe saw an average property insurance rate decline of 7% in Q3, a faster pace than Q2’s 4%.The UK market also saw a slight increase in the pace of decline to 7% (from 6%), while Asia was stable at a 5% quarterly rate decline, while other regions saw higher declines in some cases but with a broad variation.

Insurance carriers are likely to continue passing on the benefits of more efficient property reinsurance pricing over the next quarter and into 2026, especially given expectations of a perhaps considerably softer market at the end of year renewals..All of our Artemis Live insurance-linked securities (ILS), catastrophe bonds and reinsurance can be accessed online.Our can be subscribed to using the typical podcast services providers, including Apple, Google, Spotify and more.