Composite insurance rates in the second quarter of this year decreased by 5% in the India, Middle East, and Africa (IMEA) region, where rates for large and complex organisations are often impacted by the reinsurance market, according to Marsh's "Global Insurance Market Index" for 2Q2025.
Property insurance rates fall
Property insurance rates in IMEA decreased by 5% in the second quarter of 2025, as demand and competition increased. In the Middle East and Africa, decreases ranged from flat to 10%; in India, clients experienced increases of 20% to 25%.
After a spike in 2024, rates in catastrophe-exposed sectors and higher-hazard industries — including chemical, food, and waste and recycling — declined by up to 10%.
Clients with poorer loss records faced capacity constraints and less favourable rates.
Regional players and multinational reinsurers fostered competition, leading to rate declines, particularly in the Middle East and Africa.
Casualty insurance composite rate flat
Casualty insurance rates in IMEA remained flat overall in 2Q2025, with capacity-driven and non-complex risks seeing premiums flat or reduced by up to 5%.
Rates were stable in India, the UAE, and South Africa; Saudi Arabia experienced decreases up to 5%.
US casualty exposures significantly influenced appetite and capacity deployment in the region.
The introduction of new capacity, particularly in reinsurance, fostered competition.
Financial and professional lines rates decline, vary regionally
Financial and professional lines rates declined by 7%.
Directors and officers (D&O) liability insurance rates varied by region – India remained flat, South Africa saw increases of 0% to 5%, and the Middle East (UAE and Saudi Arabia) experienced decreases of 15% to 20%.
Financial institutions (FIs) in the Middle East saw rate reductions ranging from 10% to 15%, supported by increased capacity from London and Dubai; FI rates in India remained stable with reduced capacity or lower limits.
The professional indemnity (PI) market in India remained stable; South Africa and the Middle East experienced decreases of 5% to 10%.
Cyber insurance rates decline as capacity increases
Cyber rates decreased by an average of 5%, with some clients in the Middle East seeing declines of over 15%. Rates in India increased by 5% to 10%. South Africa experienced decreases of up to 5%.
There was an influx of new capacity, particularly in excess and primary layers.
In the Middle East, increased capacity was driven by new entrants, greater competition among insurers, and pricing movements; in India and Africa, insurers appeared cautious.
Global
The Global Insurance Market Index is Marsh’s proprietary measure of global commercial insurance rate change at renewal.
Global composite insurance rate changes by region in 2Q2025 were as follows:
-
-
-
|
Market
|
2Q2025 change
|
|
IMEA
|
-5%
|
|
Asia
|
-5%
|
|
Pacific
|
-11%
|
|
US
|
0%
|
|
UK
|
-6%
|
|
Canada
|
-4%
|
|
Europe
|
-4%
|
|
Latin America
|
-5%
|
|
Source: Marsh Global Insurance Market Index 2Q2025
|