Global commercial insurance pricing dropped by 6 per cent in the second quarter of 2026, according to Marsh’s Global Insurance Market Index, extending a broad softening trend across the sector. This latest decrease follows a 5 per cent reduction in the first quarter and represents the eighth straight quarter of declining rates across major insurance lines.
Marsh reported that the continued downward movement has been supported by strong insurer profitability, abundant capital, relatively low reinsurance costs, and solid investment returns. Together, these conditions have encouraged intense market competition and increased capacity, putting sustained pressure on premium levels worldwide.
Regional pricing trends showed declines across every market
All global regions recorded year-on-year price reductions in the second quarter of 2026. The steepest fall was seen in the India, Middle East and Africa region, where premiums declined by 16 per cent. The Pacific region followed with a 13 per cent drop, while Latin America and the Caribbean posted a 9 per cent decline. Prices were also down by 8 per cent in the UK, 7 per cent in Canada, 6 per cent in Europe, and 5 per cent in Asia. In the US, the pace of decline increased from 1 per cent in the first quarter to 2 per cent in the second quarter.
Property, liability, financial lines, and cyber moved at different speeds
Property insurance experienced the sharpest global decline, with premiums falling by 12 per cent in the second quarter after a 9 per cent reduction in the first quarter and a similar downward pattern in late 2025. Double-digit decreases were recorded in several regions, including IMEA at 19 per cent, the Pacific at 15 per cent, Latin America and the Caribbean at 14 per cent, the US at 13 per cent, and the UK at 11 per cent. Europe, Canada, and Asia also continued to see lower property rates.
By contrast, liability insurance was the only major category to register a global increase, rising by 2 per cent in the second quarter, although this was lower than the 3 per cent increase recorded in the previous quarter. This overall rise was mainly driven by the US market, where liability pricing increased by 7 per cent. Marsh indicated that underwriting for US-exposed risks remained more rigorous, and insurers continued to apply a selective approach based on programme structure and risk quality despite available capacity.
Financial and professional indemnity insurance premiums declined by 3 per cent globally during the quarter, easing from the 5 per cent drop seen previously. Marsh noted that these lines may be moving toward a more stable environment after a prolonged period of falling prices. Even so, underwriting became more selective. While most regions continued to record price reductions, the US stood out with a 1 per cent increase after a 2 per cent fall in the first quarter.
Cyber insurance also remained on a downward path, with global premiums decreasing by 4 per cent in the second quarter after a 5 per cent fall in the first. This marked the twelfth consecutive quarter of declining cyber insurance prices. The largest reduction was recorded in IMEA at 14 per cent, while decreases in other regions ranged from 10 per cent in Latin America and the Caribbean to 2 per cent in the US.
Market conditions may create broader strategic opportunities for buyers
Commenting on the findings, Yeşim Aksüt, CEO of Marsh Risk Turkey, said insurers in many markets are now trying to distinguish themselves not only through lower pricing but also through broader coverage terms and reduced deductibles. She added that although many buyers remain focused on lowering premium costs because of economic uncertainty, a number of organisations, including captive insurers, are still investing in alternative risk management strategies.
Aksüt said that unless the Northern Hemisphere experiences a severe storm season, current market conditions are likely to continue. She suggested that this softer market could provide an important opportunity for organisations to expand coverage, reassess programme structures, and strengthen risk strategies so they are better prepared for future changes in the insurance cycle.
