Average commercial insurance renewal rates slipped into negative territory in the United States in the first quarter and continued to fall globally, according to Marsh LLC’s latest global insurance market index released Thursday.
While casualty rates continued to increase, rates for property, financial and professional lines, and cyber liability all fell, as competition between insurers heated up, according to the report.
Globally, rates fell 3%, marking the third consecutive quarter of declines. Property, financial and professional lines, and cyber liability rates all fell 6%, while casualty rates increased 4%.
In the United States, rates, which were flat in the fourth quarter, slipped 1%.
Property saw the sharpest decline at 9%, compared with a 4% decline in the fourth quarter of 2024. Insurers offered coverage enhancements, including higher limits, revised wordings and lower deductibles as they sought to maintain rating levels, Marsh said.
Casualty rate increases in the U.S. accelerated to 8% from 7% in the prior quarter. Excluding workers compensation, which has seen flat or falling rates for several years, casualty rates increased by 12%.
Auto liability continued to be a challenge for casualty insurers due to larger jury verdicts and rising repair costs, Marsh said. General liability rate increases averaged 2%. Umbrella and excess rates, though, rose 16% as insurers reduced limits and several London-based excess insurers shuttered last year.
U.S. financial and professional lines rates fell 3%, the same as the previous quarter, and cyber liability rates fell 4%, the eighth consecutive quarterly reduction, Marsh said.