After years of rising prices, commercial insurance is finally getting cheaper. Marsh's latest Global Insurance Market Index, released on July 23, 2026, shows rates falling for the eighth quarter in a row. For small businesses, though, the savings are not evenly spread, and knowing where they are can help you negotiate a better renewal.
The Q2 numbers
Marsh reports that global commercial insurance rates fell 6% in the second quarter of 2026, after a 5% decline in the first quarter. In the United States, the overall composite rate fell 2%, following a 1% dip in Q1. Marsh attributes the trend to abundant capacity and strong competition among insurers, backed by healthy underwriting profits, lower reinsurance costs, and higher investment returns.
Buyers are getting more than lower prices. Marsh says insurers are competing with broader coverage, expanded policy terms, and lower deductibles, and that underwriting scrutiny eased in many markets.
Where prices are not falling
Property insurance is doing the heavy lifting. Marsh shows global property rates down 12%, with US property down about 13%. Casualty, which includes general liability, is a different story: rates rose 2% globally and about 7% in the US, easing from a 9% increase in the first quarter. Financial and professional liability rates fell 3% globally but ticked up 1% in the US. Marsh links the US casualty pressure to claim severity and litigation costs.
A separate industry analysis published by ServiceMag reported that commercial auto rates rose about 4.5% in the second quarter while overall commercial premiums fell, and that umbrella pricing kept rising. Different indexes measure different slices of the market, so the exact figures vary, but the direction is consistent: vehicle and liability lines are the stubborn ones.
A caution for small accounts
Marsh's index skews toward larger accounts, so a small business should not expect to see the headline percentages. The same ServiceMag analysis found that small accounts saw only a slight decline in Q2, far less than large accounts. Still, the broader competition for business gives smaller buyers more room to negotiate on terms even when the price cut is modest.
What to ask for at renewal
- Start early. Request quotes 60 to 90 days before renewal so you have time to compare carriers.
- Negotiate terms, not just price. Ask about lower deductibles, higher limits, and broader coverage at the same premium.
- Re-check a package policy. If you carry separate property and liability policies, compare them against a Business Owner's Policy.
- Do not skimp on liability and auto. Those lines are still rising, and gaps are costly when a claim hits.
- Review employee-related coverage. Workers' compensation is legally required in nearly every state once you hire, so confirm your payroll classification and estimates are accurate.
A soft market is a chance to get better terms, not only a lower bill. Shop early, compare packages, and keep liability limits strong even as property prices fall.
Use our business liability calculator to estimate what adequate coverage should look like before you start collecting quotes.