Insurance rates in the third quarter of this year decreased by 14% in the IMEA (India, Middle East, and Africa) region, according to Marsh's "Global Insurance Market Index" (GIMI). No major losses were reported across major insurance lines.
The report shows that all regions (US, Asia, Canada, Europe, the UK, Latin America, Pacific, IMEA) saw a fall in composite insurance rates in the third quarter. The US dipped the least, by 1%, while IMEA dropped the most, by 14%.
Property rates decline across key markets
Property insurance rates in IMEA decreased by 15%, compared with 19% in the prior quarter.
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Rates continued to vary significantly by market, with the steepest reductions in India and South Africa, and more moderate, although still double-digit, decreases in the UAE and Saudi Arabia.
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Capacity increased across the region, with most placements oversubscribed.
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In India, ample capacity and the removal of tariffs encouraged insurer competition.
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Political violence capacity decreased from pre-Middle East conflict levels, although there are new market entrants and pricing has moderated from the highs seen in the first half of 2026.
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Local insurers produced high levels of pricing pressure for some global insurers.
Casualty insurance rates move lower as capacity remains stable
Casualty insurance rates decreased by 5%, compared with a 3% decrease in the prior quarter.
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Pricing for general liability varied by market, with India and the UAE recording the largest declines, Saudi Arabia seeing more moderate decreases, and South Africa remaining stable.
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Capacity remained broadly unchanged in the Middle East. Regional insurers continued to offer attractive pricing for lower limits, while multinational insurers typically favoured larger placements above $10m.
- Accounts with US exposure continued to weigh heavily on regional appetite and capacity, shaping insurer participation across the market.
Financial and professional lines rates decline as capacity outstrips demand
Financial and professional lines rates declined by 6%, the same as the prior two quarters.
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Directors and officers (D&O) rates declined, with the sharpest changes in India, followed by the UAE and Saudi Arabia. South Africa saw smaller reductions or flat renewals.
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Financial institutions saw broadly low single-digit decreases across most of the region, with London and Dubai capacity continuing to support pricing in the Middle East and South Africa. Rates in India stood out, decreasing by as much as 20%.
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Professional indemnity rates declined broadly across the region, with the steepest reductions in India.
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Capacity continued to outstrip demand across D&O, financial institutions, and professional indemnity, creating room for buyers to negotiate both price and terms.
Cyber market remains insured-friendly as capacity expands
Cyber insurance rates decreased by 10%, marking the 12th consecutive quarter of rate declines.
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Overall market conditions remained favourable for buyers, with India seeing the steepest reductions, followed by the Middle East, and South Africa, which saw the smallest reductions.
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New entrants continued to support capacity growth in the Middle East.
- Insurers remained cautious in the wake of the Middle East conflict, although no immediate price and capacity reactions were seen.