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Global commercial insurance rates fall 5% in Q3 2026, ninth straight quarterly drop
Property and cyber prices keep sliding and buyers are getting better terms, but casualty rates rose in the U.S. and Marsh sees early signs of stabilization.
This article is general information, not financial, investment or insurance advice. Check the details with a qualified adviser before you decide.
A ninth straight decline
Global commercial insurance rates fell on average by 5% in Q3 2026, the ninth straight quarterly decline, which means buyers of commercial cover are still paying less than they did a quarter earlier. [1] The drop follows a 6% decline in Q2 2026. [1][2]
Buyers in Q3 2026 were generally able to obtain reduced rates, enhanced coverage terms, higher limits, lower deductibles and long-term agreements. [1]
Why prices keep falling
Marsh attributed the decline to strong financial results in the global marketplace, favorable reinsurance terms, new market entrants, and expanded capacity from managing general agents. [1] Strong insurer profitability, a surplus of capital, lower reinsurance costs, and higher investment returns were intensifying competition and contributing to lower rates. [2]
Donnelly said a benign U.S. hurricane season contributed to favorable underwriting results, helping sustain capacity and high levels of competition. [1]
Line by line
Global property rates declined 10% in Q3 2026, the largest decline of any line of business. [1] That follows a 12% fall in Q2 2026 and 9% in the first three months of 2026. [1]
Global casualty rates increased 1%, the only uptick among the GIMI lines. [1] The rise was driven by rate increases in the U.S., where litigation and large settlements influenced pricing. [1] Casualty capacity was increasingly selective, with higher attachments. [1]
Global cyber rates declined 4%, the 13th consecutive quarter of declines. [1] US cyber rates were flat, ending a streak of declines. [1] Global financial and professional lines rates decreased 3%, the seventeenth consecutive quarter of declines. [2]
Underwriting scrutiny was most seen for catastrophe exposure, US casualty, D&O, and cyber exposures linked to artificial intelligence, vendor dependencies, privacy and ransomware. [1]
The UK market
UK commercial insurance rates fell 8% in Q3 2026, matching the prior two quarters, and extended the run of consecutive UK rate declines to 11. [3] UK property rates fell 11%, unchanged from the prior quarter. [3] The absence of major risk losses in the UK during the quarter supported the current pricing. [3]
UK casualty rates declined 3% overall, and casualty excluding motor fell 5%, the fourth consecutive quarterly decline. [3] Motor outcomes varied by sector, ranging from increases of 5% to reductions of the same magnitude depending on the account. [3] Growing electric vehicle claims continued to drive higher severity and longer repair times across UK motor lines. [3]
UK financial and professional lines rates fell 5%, compared with a 4% decline in the prior quarter. [3] UK cyber rates fell 7%, slightly faster than the 5% decline in the prior quarter. [3] UK financial institutions cover pricing is being monitored for the potential effect of the UK motor finance commission case. [3]
What it means for buyers
If you buy commercial insurance, Q3 2026 offered room to negotiate: buyers were generally able to obtain reduced rates, enhanced coverage terms, higher limits, lower deductibles and long-term agreements. [1] Some clients used the savings to restructure programs, obtain higher limits or broaden coverage. [1] According to Donnelly, many clients were more inclined to retain premium savings in the uncertain geopolitical climate rather than reinvest them. [1]
If you buy casualty cover in the U.S., expect a different picture, since rates rose there and litigation and large settlements influenced pricing. [1] If you buy cyber, D&O or catastrophe-exposed cover, underwriting scrutiny was most seen in those areas. [1]
Marsh observed early signs of rate stabilization emerging in Q3 2026. [1]
Sources
- Global Commercial Insurance Rates Drop 5% in Q3; Signs of Stabilization - Carrier Management — Carrier Management
- Marsh & McLennan : Global commercial insurance rates fall 5% in Q3 2026; marks ninth consecutive quarterly decline — MarketScreener
- UK commercial insurance rates fall for eleventh straight quarter — Insurance Business America
Written from the sources above and checked twice before publishing. How we work · Report an error
