Marsh McLennan, a major player in the insurance industry, has shared some eye-opening updates about the market and its own plans moving forward. John Doyle, the company’s president and CEO, highlighted a concerning gap: insurance prices are dropping, but the cost of risk keeps going up. This, he warns, isn’t a balance that can hold for long.
During a recent call to discuss the company’s third-quarter earnings, Doyle said the current conditions seen this year will probably stick around into 2026. He pointed to a market that’s competitive but growing slowly due to a tricky global economy. Even as insurance rates fall—especially in property and catastrophe reinsurance—some areas like global casualty insurance and U.S. excess casualty are bucking the trend and actually seeing rate increases.
Looking closer at the numbers, property insurance rates worldwide fell 8% in Q3, slightly steeper than the 7% drop in Q2. On the whole, commercial insurance rates slipped 4% during the third quarter, on the back of a similar decrease the quarter before. The U.S. saw a modest 1% drop, Canada 3%, while other regions like the UK, Latin America, and Asia each experienced declines in the mid-single digits. The Pacific region took the biggest hit, with rates falling by double digits. On the other hand, casualty insurance grew by 3%, and U.S. excess casualty jumped 16%, reflecting ongoing pressures where liability exposures remain high.
Doyle pointed out several “pressure points” adding to costs, including slowing economic growth, falling interest rates, more frequent extreme weather events, higher liability costs—especially in the U.S.—and rising healthcare expenses. To tackle these challenges, Marsh McLennan is launching a cost-saving initiative called “Thrive.” The program focuses on automating processes and managing workforce changes to improve efficiency and scale.
The company expects Thrive to save about $400 million over the next three years. However, getting there will come with upfront costs of roughly $500 million. Part of the effort involves rebranding as “Marsh” and creating a new division called Business and Client Services. Doyle said these moves will help the company invest in technology, including artificial intelligence, and attract talent. The goal is to serve clients better, grow faster, and boost profit margins.
Speaking of talent, Doyle took a strong stance against competitors who try to lure away Marsh McLennan employees by questionable means. He accused some rivals of breaking laws and ethics by encouraging workers to break contractual agreements. Marsh McLennan has responded by filing lawsuits against companies like Willis Towers Watson and Granite Insurance Agency for allegedly stealing clients and staff.
Despite these challenges, Doyle emphasized that the company values competition and sees mobility in the workforce as a positive for the industry. With over 90,000 employees worldwide, Marsh is confident it remains a sought-after employer.
The insurance market remains tough, with price drops on one side and rising risks on the other. Marsh McLennan’s new strategies show it’s working hard to adapt and stay strong in this shifting landscape.