Commercial pricing fell 12% in the Australia-dominated Pacific region in the first quarter, matching the preceding period’s decline, the latest Marsh market index shows.

Property pricing in the region dropped 14% for a third straight quarter and casualty fell by 9% for a second consecutive period.

 

 

Marsh says property insurers are focused on growth and retention, and new and restructured business is attracting multiple providers.

Casualty appetite is “renewed”, with increased competition for primary and excess lines from Australian and London markets, while clients with US exposure, adverse claims performance and significant exposure growth are seeing “flat to larger increases”.

Pacific financial and professional lines pricing fell 7%, compared with 8% in the December quarter, and the drop in cyber eased to 6% from 7%.

“Claim activity remained stable, though ransomware/extortion events continued to account for the largest losses – an area underwriters are monitoring,” the Marsh Global Insurance Market Index report says.

“Insurers increasingly sought to differentiate their offerings with value-added services including bursary contributions, vendor partnerships and in-house risk management support.”

 

 

Global commercial rates fell an average of 5% in the first quarter, compared with 4% in the preceding period.

Rates have fallen for seven consecutive quarters globally, driven by abundant capacity and intense insurer competition across most major product lines.

Marsh Risk global placement president John Donnelly says clients can optimise program structures, increase limits or adjust retentions to improve resilience in the year ahead.

“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,” he said.

“This is especially true in lines such as property, which is supported by favourable reinsurance terms and significant capacity.”

All regions experienced year-on-year composite rate drops in the first quarter.

Property led the global slide with a 9% fall. Casualty rates increased 3%, easing from a 4% increase in the fourth quarter.

A second straight gain of 9% in the US was fuelled by persistent claims severity.

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From the latest Insurance News magazine: Find out what the market has in store for you, as we reveal some highlights from Insurance News and Finity's 2026 INFORM report

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