Commercial insurance rates fall by up to 25% in India

Catastrophe-exposed and high-hazard industries — including chemical, food, waste, and recycling — saw declines of up to 20 per cent in India and up to 15 per cent in other regions.

While Marsh has not mentioned the health insurance rates, industry sources said it remained high with insurers jacking up premium on renewals and new policies in the wake of prevailing high medical inflation in the country.

Casualty insurance rates decreased 5 per cent in the IMEA region – India, Middle East (West Asia) and Africa.

In India, rates ranged from flat to decreases of up to 20 per cent; Saudi Arabia saw declines of up to 10 per cent.

Rates in South Africa and the UAE remained stable. US casualty exposures continued to influence regional appetite and deployment of capacity, Marsh said.

India recorded decreases of 10 per cent to 15 per cent in cyber insurance rates while the West Asia saw declines of 5 per cent to 10 per cent. South Africa experienced flat to 5 per cent increases.

New market entrants and higher competition drove capacity growth, especially in the West Asia. Insurers in India and Africa remained cautious amid evolving risk profiles.

Marsh said financial and professional lines rates declined 11 per cent. Directors and officers (D&O) liability rates decreased 20 per cent to 25 per cent in India and 15 per cent to 20 per cent in the UAE and Saudi Arabia; South Africa remained stable.

Financial institutions rates declined 5 per cent to 10 per cent in the West Asia and 15 per cent to 20 per cent in India, supported by increased capacity from London and Dubai.

Professional indemnity rates were stable in South Africa, while declining 15 per cent to 20 per cent in India and 10 per cent to 15 per cent in the West Asia. Increased insurer participation contributed to sustained competitive conditions, it said.

Gross premium underwritten by Indian insurers during calendar year 2025 was Rs 2.50 lakh crore, a rise of 8.69 per cent on a year-on-year basis, according to General Insurance Council data.

On the other hand, global commercial insurance rates declined by 4 per cent in the quarter under review, marking the sixth consecutive quarterly decrease following seven years of increases.

This sustained decline reflects growing competition among insurers, favourable loss conditions and increased market capacity across most product lines and geographies, benefiting policyholders.

The IMEA region, which recorded one of the largest composite rates decreases globally, continued to benefit from strong international reinsurance support for large and complex risks, although the impact varied across individual markets, including India, Marsh said.

However, this improved market environment must be viewed in the context of India’s evolving risk profile.

Increased exposure to climate-related events, growing interdependence of supply chains, and rising cyber and data security threats are reshaping corporate risk landscapes.

As highlighted in recent economic assessments, India’s growth story is increasingly linked to infrastructure resilience and digital trust.

In this environment, organisations should move beyond short-term cost considerations and use current market conditions to secure broader coverage, invest in risk mitigation and build long-term resilience, the US firm said.

Omar Gemei, Head of Global Placement, IMEA, Marsh, said, “India’s insurance market is entering a more mature and competitive phase, underpinned by strong economic momentum, sustained public and private investment in infrastructure, and rapid digitalisation across sectors. In the fourth quarter of 2025, rising insurer and re-insurer capacity created a more favourable pricing environment across key lines such as property, finance, and cyber insurance.”

“Those that align insurance strategy with business continuity and governance priorities will be best positioned to sustain growth in an increasingly complex operating environment,” Gemei said.

This presents a timely opportunity for Indian businesses to review their risk transfer strategies and strengthen protection at a time when economic activity and asset values are expanding at scale.

“Regional and multinational re-insurers expanded their presence, intensifying competition, particularly in the Middle East and Africa. Increased capacity supported improved pricing outcomes across most sectors,” Marsh said.