Softening Insurance Market Gives Consultants Room to Review Cover

The global index, released on 23 July 2026, found average commercial insurance rates fell 6% in the second quarter of 2026. It was the eighth consecutive quarterly fall and a slightly sharper decline than the 5% recorded in the previous quarter. For the Pacific region, which is heavily influenced by Australia and New Zealand, the movement was more pronounced: composite rates fell 13%, the second-steepest regional decline reported.

For consultants, the headline should not be read as a promise that every policy will become cheaper. Professional indemnity, public liability, cyber, management liability and property risks are priced on different factors, including profession, turnover, claims history, contract terms and the nature of client work. However, the broader direction of the market matters because it can influence insurer appetite, deductible settings, policy wording and the willingness of underwriters to compete for desirable risks.

Marsh’s data points to abundant capacity, strong insurer competition, lower reinsurance pressure and healthier investment returns as factors supporting the softer market. Property rates were a major driver globally, while financial and professional lines also eased on average, although underwriting remains selective. That distinction is important for consultants: a lower-rate environment does not remove the need to explain your services clearly, disclose emerging risks and check that your policy still matches your contracts.

The practical opportunity is to treat renewal as a strategic review rather than a price-only exercise. Consultants should consider:

• whether professional indemnity limits still align with client contracts and project values;
• whether cyber, privacy, AI-related services or outsourced work create gaps in existing cover;
• whether deductibles can be adjusted without creating cash-flow strain during a claim;
• whether policy definitions properly reflect current consulting activities;
• whether run-off, retroactive dates and subcontractor arrangements are being handled correctly.

This is also a useful reminder that market cycles can turn. Severe weather, large loss events, regulatory pressure or a shift in insurer profitability could narrow today’s window. Consultants who only bank a premium saving may miss the chance to improve protection while insurers are competing for quality business.

Before accepting a renewal, it may be worth taking time to compare options and discuss the detail with a broker who understands professional services risks. The best outcome may not be the cheapest policy, but a better-balanced insurance programme that supports your reputation, contracts and long-term business resilience.