Global property insurance rates accelerated their downward trend in the fourth quarter of 2025, with broker Marsh Risk reporting a 9% global decline, led by a sharp 14% drop in the Pacific region.In its latest report on global commercial insurance rates, Marsh Risk highlighted that growing competition among insurers, coupled with a favourable loss environment and reinsurance pricing were the primary drivers for the rate decline along with increased market capacity.Commenting on the report, John Donnelly, President, Global Placement, Marsh Risk, said: “The global insurance market has been characterized by ample capacity across most lines and regions over the last six quarters.In the absence of unforeseen circumstances we expect this trend to continue throughout 2026.

“This year, clients have the opportunity to secure reduced premium rates and negotiate broader terms which may include improving the resilience of their programs to cater for the increasing complexity of risks.” As mentioned, property rates declined by 9% in Q4 2025 on a global basis, Rates fell fastest in the Pacific region, which recorded a 14% decline in the quarter, while Latin America and Caribbean (LAC), India, Middle East and Asia (IMEA), and the UK also recorded double-digit decreases too.In the key United States marketplace, property rates decreased by 8%, compared to the 9% decrease seen in Q3.The broker explained that the apparent moderation in US property rate declines in Q4, in comparison to Q3, were primarily driven by the timing of the January renewals.

As the proportion of catastrophe-driven placements with larger rate decreases was lower than in prior periods, the general pace of decrease slowed quarter-over-quarter, Marsh Risk noted.As well as this, the broker outlined that insurer competition intensified among US property rates, as capacity continued to increase from new and existing insurers, due in part to lower reinsurance costs.Canada, much like the US market, also saw property rates decline by 8%.

Marsh outlined that insurers across the Canadian market generally offered more favourable policy conditions during the quarter, in order to secure business amid ongoing rate pressures.Switching attention to the UK, property insurance rates decreased 10% in Q4 2025, compared to a 7% decline in Q3.Marsh acknowledged that competition within the space remained high during the quarter, as insurers typically pursued new clients and expanded business.

However, the broker noted that significant capacity was available, and insurers generally offered large limits, including in challenging industry segments.Meanwhile, across Europe propertyinsurance rates declined 8% in the fourth quarter, while IMEA saw rates decrease by 11%, with regional variation.Within the IMEA region, property rate declines were generally driven by increased capacity and competition, with the Middle East and Africa witnessing rate declines ranging from 5% to 15%, while India experienced decreases between 15% to 25%.

Property insurance rates declined for the seventh consecutive quarter for the Pacific region, which as mentioned, witnessed a 14% decline in Q4 2025.Marsh stated that the largest rate reductions occurred in distressed sectors with historically high-rate increases and capacity limitations.Meanwhile, Asia witnessed the lowest decline, with property insurance rates only dropping by 5%, much like we saw in both Q3 and Q2.

And lastly, in the LAC marketplace, property insurance rates declined by 12%, with the most significant reductions occurring in Chile and Brazil.Insurance carriers are likely to continue passing on the benefits of more efficient property reinsurance pricing over the next quarter as the industry continues into 2026, especially given the considerably softer market conditions that were evident at the January renewals..All of our Artemis Live insurance-linked securities (ILS), catastrophe bonds and reinsurance can be accessed online.

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