Global Insurance Rates Decline Despite Rising Catastrophe Losses
A Strategic Window Opens for Insurance Buyers Amid Market Softening
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The global insurance market is experiencing a paradoxical trend: despite a significant rise in catastrophe losses, insurance rates are declining, creating a favorable environment for buyers.
In 2025, global insured catastrophe losses exceeded US$100 billion for the sixth consecutive year, yet the market has remained 'soft' into the first half of 2026.
This trend is particularly evident in Australia, where the insurance landscape has remained advantageous for buyers. Factors contributing to this include strong reinsurer earnings and record (re)insurance capital deployment, leading to increased competition and capacity in the market.
For landlords, this presents an opportunity to secure comprehensive coverage at more competitive rates. However, it's essential to remain vigilant, as this window may not remain open indefinitely. Engaging with insurance brokers to explore available options and ensure adequate protection for investment properties is advisable.
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