Q1 2026 marks the seventh consecutive quarter of rate decreases. The downward rate movement in Q1 continued to be fueled by abundant capacity and intense insurer competition across most major product lines.
All global regions experienced year-over-year composite rate decreases in Q1 2026. The Pacific, and India, Middle East, and Africa (IMEA) regions experienced the largest composite rate decreases – at 12% and 10% – while rates declined in Latin America and the Caribbean (LAC) and the UK by 8%. Rates declined in Canada by 6%, and in Europe and Asia by 5%. The overall composite rate in the US – which was flat in Q4 2025 – declined by 1% in Q1 2026.
Other findings included:
Property rates declined by 9% globally, repeating the Q4 2025 trend. Double-digit decreases were recorded in five regions: PAC (14%); LAC (12%); and 10% in the US, UK, and IMEA. Rate decreases were also recorded in Europe (8%), Canada (6%), and Asia (5%).
Casualty rates increased 3% globally, down from a 4% increase in Q4. This quarter’s increase was driven by a second consecutive increase of 9% in the US, where rate increases continue to be fueled by persistent claims severity. Casualty rates declined in every other region in Q1, particularly for companies without US exposures.
Financial and professional lines rates decreased by 5% globally in the first quarter, down from a 4% decrease in Q4. Rate reductions were recorded across all regions – ranging from 8% in the UK, and 7% in Pacific and Asia, to a 2% decline in the US.
Cyber insurance rates declined by 5% globally – following a 7% decrease in Q4. The largest decline was in IMEA, at 14%, followed by reductions ranging from 11% in LAC to 2% in the US.
Commenting on the report, John Donnelly, President, Global Placement, Marsh Risk, said: “While the Middle East conflict is being carefully observed for its potential impact on insurance markets, the current competitive environment is expected to persist as insurer profitability remains strong. This is especially true in lines such as property, which is supported by favorable reinsurance terms and significant capacity. Given broad economic uncertainty and inflationary pressures, clients have the opportunity to optimize their program structures, increase limits, or adjust retentions to improve the resilience of their programs in the year ahead.”
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