Global property insurance rates fall 12% in Q2 2026, as soft market broadens: Marsh Risk

Broker Marsh Risk has reported that property rates declined 12% on a global basis in the second quarter of 2026, led by a sharp 19% decline in India, Middle East and Asia (IMEA), while double-digit decreases were also recorded in the United States, the United Kingdom, the Pacific, and Latin America and Caribbean.

In its latest report on global commercial insurance rates, Marsh Risk highlighted how Q2 2026 marked the eighth consecutive quarter of rate decreases, which according to the firm, continues to be fueled by abundant capacity and strong insurer competition across all major product lines.

The broker also observed that a combination of strong insurer profitability, a surplus of capital, reduced reinsurance costs and increased investment returns is also heightening competition, which ultimately led to further decreased rates during the period.

John Donnelly, President, Global Placement, Marsh Risk, commented: “In many markets, in addition to competing based on price, insurers are seeking to differentiate themselves through broader coverage, expanded policy terms, and lower deductibles. While economic uncertainty has led many buyers to retain premium savings, many organizations are also continuing to invest in alternative risk strategies, including captives.”

Donnelly added: “Current market conditions are likely to persist absent a severe northern hemisphere storm season or string of major natural catastrophes. This is likely to create additional opportunities for clients to improve coverage and refine program design, that may better position them for future market changes.”

As previously mentioned, property rates declined by 12% in Q2 2026 on a global basis, following 9% decreases in Q1 2026 and Q4 2025, amid available capacity following favourable reinsurance conditions.

Marsh Risk also noted that catastrophe exposure remained the primary focus for underwriters, with risk quality and exposure management driving outcomes.

Rates fell fastest in the IMEA region, which recorded a 19% decline in the quarter, compared to a 10% decline in the previous quarter. Marsh Risk observed that full-limit political violence and property losses were recorded in the Middle East during Q2, with recent property losses estimated at US$2 billion and political violence losses estimated to exceed US$3 billion across the region.

In the Pacific market, rates declined 15%, following 14% declines in each of the prior three quarters, and also marked the ninth consecutive quarter for property rate declines within the region.

The broker noted that clients within the region generally secured higher policy limits and sub-limits, especially for natural catastrophe risks, and in some cases reduced retentions too.

In Latin America and the Caribbean, property insurance rates declined 14%, with Brazil and Chile registering the steepest declines. Marsh highlighted that broad insurer appetite and available local and international capacity contributed to high levels of competition, while lower reinsurance costs reportedly drove aggressive primary pricing and capacity deployment across the region.

Switching attention to the United States, Marsh revealed that property insurance rates declined by 13%, marking the eighth consecutive quarter of decreases.

The broker explained that catastrophe-exposed programs greater than US$1 million in premium saw rates decrease by 20%, while rates for non-catastrophe programs less than US$1 million in premium dropped 10%.

At the same time, global capacity and high levels of competition, including in some higher-risk sectors, continued to broaden placement options as capacity expanded across the U.S. market.

In the UK, property rates decreased 11% in Q2’26, compared to a 10% decrease in the prior two quarters.

The broker noted that underwriters generally focused on catastrophe exposure and site-specific vulnerabilities during the quarter, even as loss experience remained broadly benign. As well as this, expectations for an intensifying El Niño is said to have also increased scrutiny around US natural catastrophe readiness even in the absence of major losses.

Meanwhile, property rates declined 9% in Europe in Q2’26, compared to 8% declines in the prior two quarters. While in Asia, property rates declined 5%, repeating the same trend seen in the last four quarters.

Lastly, in Canada property insurance rates declined 8% in the quarter, marking the ninth consecutive quarter of rate declines, as increased capacity and lower reinsurance costs contributed to high levels of competition across sectors and geographies.