Global property insurance rates are falling again as natural disaster losses ease, marking a shift after years of tough times for the industry. According to the latest Marsh Global Insurance Market Index, average property premiums worldwide dropped by 8% in the third quarter of 2025. The Pacific region saw the biggest drop, with rates falling a sharp 14%. Experts say this is mainly due to fewer natural catastrophes this year and increased competition among insurers.
The past five years have been harsh for property insurers, with natural disaster costs topping $100 billion each year. 2025 started off rough, too. In January, the Palisades Fire in Los Angeles destroyed nearly 7,000 homes and businesses. By June, related claims had pushed the total natural catastrophe losses to more than $80 billion — double the usual amount for the first half of a year. At one point, some thought the year’s total losses might reach $145 billion or even $150 billion.
But the outlook changed after a quiet hurricane season in North America. Scott Eccleston, Marsh’s head of risk management in the Pacific, said losses will still likely pass $100 billion for the year but probably won’t come close to those earlier high predictions. Despite Hurricane Melissa hitting Jamaica, industry leaders don’t expect that disaster to impact insurance rates much. There is plenty of capital available in the insurance market, which also helps push rates down.
Even properties in high-risk areas are seeing some relief on their insurance costs. High premiums and strict coverages during previous “hard market” years motivated many property owners to improve their risk management. More commercial and high-risk buildings are installing sprinklers, and many have replaced flammable materials like expandable polystyrene with safer options. These changes have helped insurers feel more confident and comfortable lowering rates.
With insurers currently enjoying better profits and plenty of new capital coming into the market, experts do not expect rates to rise again anytime soon. Instead, this easing trend looks set to continue for the foreseeable future. It’s a noticeable change for property owners who have faced years of rising insurance costs, and for insurers dealing with natural disasters and claims.
As the year closes, the market appears to be balancing out after a rough start, offering a bit of breathing room for everyone involved.