Composite insurance rates in the first quarter of 2025 decreased by 4% in the India, Middle East and Africa (IMEA) region, where rates for large and complex organisations are often driven or influenced by the reinsurance market, according to the 'Global Insurance Market Index' report published by the world's biggest insurance broking group Marsh.
The Global Insurance Market Index, which is Marsh’s proprietary measure of commercial insurance rate changes at renewal, shows that the 1Q2025 decline followed an increase of 1% in the fourth quarter of 2024 in the IMEA region, a 2% dip in 3Q2024 and an increase of 4% in 2Q2024.
Property rates decline
Property insurance rates in IMEA decreased by 4% as demand and competition increased.
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Catastrophe-exposed sectors and high-hazard industries with poor loss records — including chemical, food, waste, and recycling — faced capacity constraints and rate hikes of 10% to 25%.
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Regional insurers and multinational reinsurers typically looked to expand their property portfolios across IMEA for diversification, fostering competition and a decrease in rates in the first quarter, particularly in the Middle East and Africa.
Casualty insurance composite rate flat, underwriters scrutinise US exposures
Casualty insurance rates remained flat.
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Capacity-driven risks experienced rates from flat to increases of 5%, while non-complex, lower-capacity risks typically saw reductions ranging from 5% to 10%.
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Rates in India, the UAE, and South Africa were stable, while Saudi Arabia experienced rates from flat to decreases of 5%.
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US-based exposures significantly influenced insurer appetite and capacity deployment in the region.
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The introduction of new capacity, particularly in reinsurance, contributed to a competitive environment.
Financial and professional lines rates decline, vary regionally
Financial and professional lines rates declined by 6%.
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Directors and officers (D&O) liability rates varied across the region: India remained flat, South Africa saw increases of 5% to 10%, and UAE and Saudi Arabia experienced decreases of 20% to 25%.
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Financial institutions (FI) in the Middle East saw rate reductions of 10% to 15%, supported by increased capacity from London and Dubai. In India, FI rates remained stable, with insurers reducing capacity or deploying lower limits.
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The professional indemnity (PI) market in India remained stable, South Africa experienced increases of 5% to 10%, and the Middle East experienced decreases of 15% to 20%.
Cyber insurance rates decline as capacity increases
Cyber insurance rates decreased by 8%.
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The Middle East experienced declines of 15% to 20% and higher, India remained stable, and South Africa saw slight increases in the range of 5% to 10%.
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There was also an influx of new capacity, particularly in excess and primary layers.
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In the Middle East, increased capacity was driven by new entrants, competition among insurers and aggressive pricing. Insurers in India and South Africa were more cautious.
Global pricing
Globally, commercial insurance rates fell by 3% on average in the first quarter of 2025 following a 2% decline in 4Q2024, marking the third consecutive quarterly decrease following seven years of rising rates.
By region, composite pricing for 1Q2025 was as follows
- US: -1%
- UK: -6%
- Canada: -3%
- Europe: -1%
- Latin America and the Caribbean: -2%
- Asia: -3%
- Pacific: -8%
- India, Middle East, and Africa: -4%