By Michael Jones

April 24 - (The Insurer) - Commercial insurance rates in the UK and Europe fell by 6% and 1% respectively in the first quarter of 2025, Marsh said in its Global Insurance Market Index on Thursday.

• Global property rates fell 6%, with U.S. and Pacific down 9%

• Casualty rates rose 4% globally, driven by U.S. increase

• Increased competition and improved buyers' conditions to continue, Marsh McLennan's Doyle says

All regions showed falls in year-on-year composite rates for the period, with the U.S. down 1%; Latin America and the Caribbean $(LAC)$ down 2%; Asia and Canada down 3%; India, the Middle East and Africa $(IMEA.UK)$ down 4%, and Pacific down 8%.

Marsh McLennan CEO John Doyle said earlier this month the index showed overall rates dropping 3% in the first quarter.

"We expect the overall trend to continue, and for insurer competition to intensify, barring unforeseen changes in conditions," Doyle said.

Global property rates declined by 6%, with the U.S. and Pacific regions showing the largest decreases at 9% each.

Property rates in the UK fell by 6%; in IMEA and LAC by 4%, and Canada by 3%. Europe and Asia both saw property rate decreases of 1%.

Casualty rates increased by 4% globally in the first quarter. This was driven by an 8% increase in U.S. casualty rates due largely to the frequency and severity of casualty claims, often characterised by large jury awards.

Marsh said that insurer capacity for U.S. casualty remained constricted in the first quarter.

Europe and LAC experienced the second-largest casualty rate increases at 2% each, with the UK at 1%. Casualty remained flat in IMEA, and the Asia, Canada and Pacific regions saw 2% rate decreases.

Marsh said financial and professional lines, as well as cyber insurance, saw 6% rate decreases globally, with falls in every region.

The drops in financial and professional lines came as a result of robust competition and available capacity, while the cyber market saw insureds use premium savings to enhance coverage, reduce retentions and increase limits, it added.