Global commercial insurance rates declined for a seventh consecutive quarter in the first three months of 2026, as strong capital levels and rising competition continued to soften market conditions, according to Marsh McLennan.

The firm’s Global Insurance Market Index found that composite rates fell 5 per cent in the first quarter, led by a 9 per cent drop in property pricing, while casualty rates rose 3 per cent, driven by continued increases in the United States.

The report points to insurer capacity, fuelled in part by reinsurer growth and new market entrants, as the primary driver of declining rates.

Property, a core line for many Bermuda reinsurers, is still under the greatest pressure, with prices still falling amid what the report described as a “significant capacity oversupply” and favourable reinsurance conditions.

At the same time, while casualty rates are rising sharply in the United States due to claims severity, they are declining in other regions, creating opportunities for Bermudian-based carriers active in excess and speciality casualty lines.

The report found growing interest in alternative risk strategies, as clients use the softer market to increase retentions, purchase higher limits and explore captives and self-insurance — areas where Bermuda is a leading global hub.

Financial and professional lines, as well as cyber insurance, continued to see rate declines, although underwriting discipline has increased in some markets, the Marsh report said.

Despite geopolitical tensions like conflict in the Middle East, the impact on global insurance pricing has so far been limited to specific lines such as aviation, marine and political violence.

John Donnelly, president and global head of placement at Marsh, said: “The generally decreasing rate environment is expected to persist as long as insurer profitability remains strong. Clients should work closely with their brokers to evaluate their risk appetite, assess program structure and take advantage of evolving market opportunities.”