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New data shows that commercial insurance pricing in the UK dropped by 6% in the second quarter of 2025. This marks the fourth straight quarterly reduction, following a 3% decrease in the first quarter, according to the latest Global Insurance Market Index from Marsh.
The decline was consistent across several key areas:
• Property insurance saw a 6% reduction.
• Casualty pricing edged down 1%, but when excluding motor liability, the decrease reached 5%.
• Financial and professional lines were down by 8%.
• Cyber coverage experienced the steepest drop at 11%, with insurers in this space increasingly enhancing their offerings with advisory services tailored to risk mitigation
On a global level, average rates dropped by 4%, continuing the trend from Q1 2025, which saw a 3% reduction. This reflects a broader shift in the market as more providers compete actively, resulting in expanded capacity and more flexible terms for buyers.
Every global region reported a year-on-year decline in overall pricing during the second quarter, ranging from 4% to 11%—with the exception of the US, where levels held steady. This quarter marks the fourth successive drop worldwide, extending a pattern that began in early 2021 after several years of increases.
Marsh’s global placement leader, John Donnelly, commented on the shift, noting that heightened competition is driving better conditions for organisations. However, he also highlighted that increasing costs in the US remain an area to watch.
He added that evolving political and trade dynamics are prompting businesses to consider a broader range of options to manage their exposures.
Granite Building Warranties are specialist independent brokers of building warranties for the construction industry. For more information, please contact Ed or Kelly on 01284 365345 or email ed@granitebw.co.uk / kelly@granitebw.co.uk.
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