Property/casualty prices are declining, while the cost of risk continues to rise – a trend that is unsustainable over time, according to John Doyle, president and chief executive officer of Marsh McLennan (MMC).
Nevertheless, without significant changes in large loss activity as well as with the broader macro-economic environment, “we anticipate insurance and reinsurance market conditions seen so far this year will likely continue in 2026,” Doyle said during an analysts’ call to discuss MMC’s third quarter earnings.
“We continue to see a competitive market characterized by slower growth from an uneven economy, stronger carrier ROEs and continued decreases in overall rates, particularly in property reinsurance and property [catastrophe] reinsurance,” he said.
Indeed, Doyle noted that global property rates decreased by 8% during the third quarter, compared with a 7% decline in Q2 2025.
Further detailing the “unsustainable” mismatch between softening prices and the rising cost of risk, Doyle pointed to the “big pressure points” of a global economy that may be slowing, declining interest rates, growing exposure to extreme weather, the rapidly rising cost of liability in some markets – including in the U.S. – and increasing health care costs.
Cost-Saving Program Launched
It is perhaps with an eye on these pressure points that Doyle announced a new program called “Thrive,” which will include “automation efforts and workforce actions” to optimize the company’s scale and specialization.
Over the next three years, he said, Thrive is expected to “generate approximately $400 million in savings with a portion being reinvested to drive additional growth. We will incur around $500 million in charges to achieve these savings.”
Earlier this week, MMC said it was rebranding as “Marsh” while forming a new unit called “Business and Client Services (BCS),” which Doyle explained are core parts of the Thrive program. Thrive aims “to deliver greater value to clients, accelerate growth and improve efficiency,” Doyle said.
“The efficiencies we gain through the program will support investments in talent and technology. As we increasingly deploy AI, we can deliver even greater value for clients and colleagues. Thrive will also help us continue to expand margins,” he added.
Competitors’ Hiring Practices
Doyle went on to discuss talent in the re/insurance marketplace with a pointed complaint about competitors that poach MMC colleagues.
“A few competitors have engaged in unlawful and unethical hiring practices and encourage talent to violate their covenants as a deliberate strategy to build their businesses. In these cases, I believe it’s important to call out this behavior and to protect our rates.”
The company has responded with lawsuits, including one against rival Willis Towers Watson in May for allegedly stealing clients and another last week against Granite Insurance Agency for poaching former staff.
“This is a people business, and we have an unmatched depth of talent with over 90,000 colleagues, and we love to compete because it makes us better,” he said, noting that colleague mobility is good for the industry “and has served us well because we are an employer of choice with a strong colleague value proposition.
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