Composite insurance rates in the second quarter decreased 16% in the India, Middle East, and Africa (IMEA) region, the biggest fall across all regions analysed, according to Marsh, the global leading insurance broker.
In its latest “Global Insurance Market Index” (GIMI), Marsh highlighted IMEA rate changes at renewal as follows:
Property rates decline, capacity increases
Property insurance rates decreased by 19%, compared to 10% in the prior quarter.
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Local competition levels and capacity generally increased, putting pressure on some global insurers.
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Capacity in India remained available, impacted by the removal of tariffs.
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Rates for political violence stabilised as new markets added capacity.
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Full-limit political violence and property losses were recorded in the Middle East, with recent property losses estimated at $2bn and political violence losses estimated to exceed $3bn across the region.
Casualty insurance rates decline, capacity remains stable
Casualty insurance rates decreased by 3%, compared to a 7% decline in the prior quarter.
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Pricing for general liability varied by region, with the UAE and India seeing the largest declines.
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Capacity remained stable. Regional capacity and appetite were heavily influenced by US exposures.
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Regional insurers generally offered attractive rates for lower limits; multinational insurers tended to prefer larger limits.
Financial and professional lines rates decline
Financial and professional lines rates declined 6%, the same as the prior quarter.
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Directors and officers (D&O) liability rates decreased by between 10% and 15% in the UAE and Saudi Arabia; 5% to 10% in South Africa and between 15% and 20% in India;
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Rates for financial institutions ranged from flat to 5% declines in the UAE and Saudi Arabia, supported by capacity from London and Dubai, while rates in India were stable and in South Africa rates increased up to 5%.
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Professional indemnity rates declined by between 5% and 10% in the UAE and Saudi Arabia, increased by up to 5% in South Africa and fell between 20% and 25% in India.
Cyber insurance rates decline amid increased capacity
Cyber insurance rates decreased by 14%, the same as the prior quarter.
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The Middle East saw declines of between 5% and 10%. Rates in South Africa ranged from flat to 5% decreases. India experienced rate declines of between 25% and 30% .
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Capacity in the Middle East grew, driven by new entrants.
Global trends
Global commercial insurance rates declined by 6% in the second quarter of 2026, compared to a 5% decline in the prior quarter. Positive insurer financial performance, a surplus of capital, lower reinsurance costs, and higher investment returns have produced greater levels of competition and contributed to lower rates.
In many markets, in addition to competing based on price, insurers were seeking to differentiate themselves through broader coverage, expanded policy terms, and lower deductibles.
While market conditions remained broadly favourable, outcomes still varied by risk. Industry sector, geography, and catastrophe exposure continued to influence pricing and insurer appetite.