Commercial insurance rates in the UK fell by 6% in Q2 2025 according to the latest Global Insurance Market Index from Marsh. It represents the fourth consecutive quarterly fall and follows a 3% decrease in Q1 2025.

Property rates decreased by 6% while casualty rates fell 1% – excluding motor liability, casualty decreased by 5%. Financial and professional lines rates declined 8%, while cyber rates decreased by 11%. In the cyber sector, Marsh says insurers are increasingly providing risk management services as a way to differentiate their offerings.

Globally, the index found that global rates fell 4%, on average, following a 3% decline in Q1 2025. Increasing insurer competition, is currently the main catalyst behind rising market capacity, more favourable rates, and broader coverage options.

All global regions experienced year-over-year composite rate decreases in Q2 – of between 4% and 11%, except for the US, where the rate was flat. Q2 was the fourth consecutive global quarterly decrease following seven years of quarterly increases and is a continuation of the moderating rate trend first recorded in Q1 2021.

John Donnelly, president, global placement at Marsh, said: “Mounting competition among insurers with ambitious growth targets is providing reduced pricing and broader coverage options. Against this backdrop, rising US casualty rates are a concern for clients.

"As geopolitical issues, including tariffs and cross-border conflicts, create new challenges and uncertainties, organisations now have access to many attractive traditional and alternative financing strategies to manage their risks.”