Insurance rates in the Pacific region declined 8% in the first quarter of 2025, revealed Marsh's Global Insurance Market Index.
The decline in rates were noticeable in property, casualty, financial and professional and cyber insurance segments, where insurers are actively pursuing new business and broadening their coverage options.
Property insurance
The report revealed that the region’s property insurance rates had declined by 9% in the first quarter, with this trend continuing for the fourth consecutive quarter. With increasing competition in the segment, property insurers are actively seeking new business and offering increased capacity on existing policies. Incumbent underwriters were primarily competing on price, with limited changes to retentions, limits, and coverages. Clients with larger limits were encouraged to request alternative retentions, limits, and programme structures, generating greater competition for lead terms. Some clients are accepting long-term agreements (LTAs) for certainty on future rate movements.
Casualty insurance
Casualty insurance rates in the region declined 2% in the first quarter and this decline has been seen for the second consecutive quarter. Insurers have been competing on price, terms, and conditions as the market shifted to an increasingly competitive landscape. Larger accounts typically experienced significant improvements in terms. The approach to underwriting polyfluoroalkyl substances exposures continued to vary across territories and occupations. The challenging conditions in the US casualty market were reflected in Australian placements involving US-domiciled risks.
Financial and professional lines
The rates for financial and professional lines of business in the region decreased 10% in the first quarter with rate decreases continuing across most classes, but at a moderating pace compared to the previous quarter. Rates for large D&O liability programmes have moderated from peak levels, allowing for retention adjustments. Strong primary alternatives were generally available for large D&O programmes. LTAs were commonly available.
Cyber insurance
Cyber insurance rates in the Pacific region decreased 8% in the first quarter, as claims notifications rose due to an increase in cyber incidents, with ransomware, extortion, and fraudulent funds transfers driving claims. Insurers generally enhanced pre-loss offerings, with various risk management services available to policyholders in Australia and London. LTAs continued to be offered, with broad coverage remaining available.