Commercial property rates in the Australia-dominated Pacific region declined 9%, as a slide continued to gather pace, the latest Marsh Global Insurance Market Index shows. 

The figure compares to declines of 8% in the fourth quarter, 6% in the third quarter and 4% in the second quarter of last year. 

“Property insurers actively sought new business and typically offered increased capacity on existing policies as competition continued,” the report said. “Incumbent underwriters primarily competed on price, with limited changes to retentions, limits, and coverages.” 

Clients with larger limits were encouraged to request alternative retentions, limits, and program structures, generating greater competition for lead terms, while some clients are accepting long-term agreements for certainty on future rate movements. 

Overall, commercial rates in the region fell 8%, holding steady from the fourth quarter, with casualty down 2% and financial and professional financial and profession lines down 10%, compared with 12% in the December period. 

Cyber rates fell 8%, as they trended down at a slower pace, while claims notifications rose due to an increase in incidents. 

Global insurance rates fell 3% on average following a 2% decline in the fourth quarter, marking the third consecutive quarterly decrease following seven years of increases.  

“Driven by increased insurer competition and favourable reinsurance pricing, global commercial insurance trends continued to improve for our clients, on average, in the first quarter of 2025, with the exception of US casualty,” president global placement John Donnelly said.  

“We expect the overall trend to continue, and for insurer competition to intensify, barring unforeseen changes in conditions.”  

Rates fell 6% in the UK, 4% in India, the Middle East and Africa, 3% in Asia and Canada, 2% in Latin America and the Caribbean and 1% in the US and Europe.