07/01/2026

Are Commercial Insurance Premiums Decreasing in 2026? 

Commercial

For many businesses, the short answer is yes. After several years of rising costs, commercial insurance pricing has started to ease across large parts of the market. This doesn’t mean every policy is cheaper, but the overall direction of travel is better for buyers heading into 2026. 

The key point is this: market pricing has been falling for multiple quarters, and that trend often carries into the following renewal year. 

  • In the UK, commercial insurance rates fell by 6% in Q3 2025, the seventh consecutive quarter of decline (Marsh UK Insurance Rates).  
  • UK market data also pointed to double-digit reductions in commercial lines between Q3 2024 and Q3 2025 in some parts of the market. Commercial insurance premiums are easing in 2026, with UK rates down around 6% and global commercial rates down 4%. Learn why prices are falling and what it means for your business.

Why are commercial insurance premiums decreasing? 

Premiums are easing mainly because insurers are competing harder for business. When more insurers want to write policies (and have the appetite and capacity to do it), pricing tends to soften particularly for businesses that present well and have a stable claims record. 

This is not just “market chatter”. The same drivers show up repeatedly in market reporting, especially around competition, capacity and reinsurance pricing. 

  • Marsh attributes the global pricing decline to growing competition, favourable reinsurance pricing, and increased market capacity.  
  • Reuters also reported a real-world example of pricing pressure: Beazley lowered its written premium growth outlook, citing intensifying market competition and slower cyber growth.  

How reinsurance is helping bring prices down 

Reinsurance is essentially the cover insurers buy to protect themselves. When reinsurance pricing is more favourable, insurers can often offer more competitive premiums (and sometimes better terms) to businesses buying commercial insurance. 

This is one of the less visible reasons premiums can fall, even if your own business hasn’t changed much year to year. 

  • Marsh explicitly links rate declines to favourable reinsurance pricing alongside competition and capacity. 

Which types of commercial insurance are falling the most? 

Not every type of cover drops at the same pace. Some lines are more sensitive to competition, capacity and claims trends, while others remain stubborn due to claims severity or insurer appetite. 

That’s why you might hear “premiums are down” but still see your own renewal stay flat or even increase, depending on your trade and claims. 

Recent market reporting (based on the Marsh index) highlights: 

  • Commercial property: rates declined 8% globally in Q3 2025.  
  • Financial & professional lines: rates declined 5% globally in Q3 2025.  
  • Overall global composite commercial rates: down 4% in Q3 2025.  

(These are market averages, your result will still depend on the specifics of your business.) 

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Why some businesses still won’t see a reduction 

Even in a softer market, insurers still price based on the risk in front of them. So if something about your business looks riskier this year or your numbers have changed your premium might not follow the wider trend. 

This is where buyers get caught out: the market can be “down”, but an individual policy can still go up. 

Common reasons include: 

  • Recent claims or incidents (even if they didn’t become large losses) 
  • Higher turnover, payroll, stock values, or contract values 
  • Higher rebuild costs / sums insured on property 
  • Operating in a sector insurers are more cautious about right now 

What this means for your business in 2026 

If there’s one practical takeaway, it’s this: a softer market is a good time to review cover properly, not just hunt for the cheapest number. When insurers are competing, you can often improve the quality of cover and still keep pricing sensible. 

That’s also why a structured review helps you’re less likely to be underinsured, duplicating covers, or carrying exclusions you didn’t notice. 

A simple next step is a Free Business Insurance Health Check, which helps you sense-check whether your cover still matches the reality of your business today.

Should you expect lower premiums at your next renewal? 

 

You might especially if your business is well managed, you’ve had a stable year, and your risk information is clear. Many businesses are seeing flatter renewals or reductions because insurers are competing more, and market pricing has been easing for several quarters. 

But it’s never guaranteed. The best approach is to treat renewal as a short review cycle, not an admin task. 

If you want to explore your options, you can also find more guidance on Norton’s commercial insurance pages here:
Norton Commercial: Explore commercial insurance 

Ready to get your commercial insurance sorted? 

If you want your commercial insurance reviewed properly and want to know whether you could benefit from the current market fill in the form below and we’ll get in touch.

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