Commercial insurance rates across the India, Middle East and Africa (IMEA) region fell by 5% in Q2 2025, according to Marsh’s Global Insurance Market Index. This marks the fourth straight quarter of decline in global rates, which dropped 4% overall in the same period.
Declines in IMEA spanned key sectors. Property insurance fell around 5%, with the Middle East and Africa seeing reductions up to 10%, while India registered increases of 20–25%, especially in high‑risk segments. Casualty rates held steady, though underwriters remained cautious over exposures linked to US casualty trends. Financial and professional lines fell 7%, with D&O down 15–20% in the UAE and Saudi Arabia, flat in India, and up slightly in South Africa. Financial institutions in the Middle East saw rate reductions of 10–15%. Cyber rates also declined by 5%, with Middle East clients realising cuts of over 15%, whereas India saw modest increases.
Omar Gemei, head of Global Placement for Marsh IMEA, said the influx of reinsurance capacity and insurer competition allows risk managers to optimise programmes on better terms, especially amid accelerating infrastructure and digital investment. He cautioned that falling rates do not lower the importance of assessing coverage adequacy amid emerging threats such as cyber breaches and supply chain disruption.
Globally, the rate of softening across regions reflects increased insurer competition and capacity, enabling broader coverage options for clients.
The easing in IMEA rates reflects a shift from a hard insurance market; surplus reinsurance capacity is driving competition across most commercial lines. However, regional nuances persist. India’s rate increases in property and cyber suggest underwriting caution in risk-dense sectors. The flat casualty trends indicate price sensitivity in lines affected by global litigation exposures, particularly in the US. In this context, Marsh’s advice to bolster cover, even amid cost pressure, remains prudent for Middle East and African clients navigating complex risk environments.
