Insurance rates in the Pacific region saw a decline of 8% during the first quarter of 2025, as reported in Marsh’s Global Insurance Market Index. This downward trend was observed across multiple sectors, including property, casualty, financial and professional lines, and cyber insurance. Insurers in the region are actively pursuing new business and expanding their coverage options, contributing to the rate reductions.
Property Insurance
Property insurance rates in the Pacific region dropped by 9% in the first quarter, marking the fourth consecutive quarter of decline. Increased competition in this segment has led property insurers to seek new business opportunities and offer greater capacity on existing policies. While underwriters primarily competed on price, there were limited changes in retention, limits, and coverage. Clients with larger limits were encouraged to explore alternative retention structures, leading to more competitive terms. Many clients opted for long-term agreements (LTAs) to secure stability in future rate movements.
Casualty Insurance
Casualty insurance rates decreased by 2% in the first quarter, continuing a trend of decline for the second consecutive quarter. The market has become more competitive, with insurers competing on price, terms, and conditions. Larger accounts generally experienced more favorable terms. The underwriting approach to polyfluoroalkyl substances exposures remained varied across regions and industries, while the challenges in the US casualty market were reflected in Australian placements involving US-domiciled risks.
Financial and Professional Lines
Rates for financial and professional lines saw a 10% decrease in the first quarter, with rate reductions continuing across most classes, though at a slower pace than in the previous quarter. Rates for large Directors and Officers (D&O) liability programs moderated from their peak levels, allowing for adjustments in retention. Strong primary alternatives were available for large D&O programs, and LTAs were commonly offered to ensure stability.
Cyber Insurance
Cyber insurance rates in the Pacific region also dropped by 8% in the first quarter, despite an increase in claims notifications driven by incidents such as ransomware attacks, extortion, and fraudulent funds transfers. Insurers responded by enhancing their pre-loss offerings, providing various risk management services to policyholders in Australia and London. LTAs continued to be available, and broad coverage remained accessible despite rising claims activity.
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