Q2 2024
India, Middle East, and Africa composite rate increases
Insurance rates in the second quarter of 2024 increased 4%.
India, Middle East, and Africa (IMEA) second quarter 2024
IMEA property rates increase, driven by CAT exposures
Property insurance rates increased 6%.
- Rate increases were influenced by higher reinsurance and capital costs in catastrophe (CAT)-exposed portfolios; capacity demand and continued loss activity, especially due to floods experienced in UAE; and other large losses in Saudi Arabia, India, and Africa.
- Organizations that were CAT-exposed; in high-hazard sectors such as chemical, and food, waste, and recycling; or with poor loss records generally faced capacity challenges and experienced rate increases as high as 25%.
- Non-CAT-exposed portfolios experienced:
- In India, rate decreases in the 15% to 20% range, on average.
- In Saudi Arabia, stable conditions.
- In South Africa, increases up to 5%.
- In UAE, increases were in the 25% to 30% range, on average.
- Inflation also played a role in rate increases due to the increased value of insured property.
- Regional (re)insurers are increasingly growing their property business across IMEA for diversification, which promotes competition and mitigates current challenges.
Casualty insurance sees new reinsurer capacity
Casualty insurance rates were flat.
- New capacity, especially from reinsurers, has helped to increase competition.
- US exposure remained a key driver of insurer appetite, with a direct impact on capacity deployment.
- Insurers continued to focus on loss-impacted and heavily exposed risks.
Financial and professional lines rates decline
Financial and professional lines rates declined 8%.
- Directors and officers (D&O) liability rates varied by region and country:
- India and South Africa experienced flat renewals; the Middle East saw decreases of 25% to 30% on average.
- New local capacity has entered the South African market, but the effect has been offset by the exit of a major insurer.
- Rates for financial institutions (FIs) decreased 10% to 15%, on average, with additional capacity available from London and Dubai. India and South Africa experienced flat rates.
- Professional indemnity (PI) rates in the Middle East decreased 10% to 15%, on average. India and South Africa experienced flat rates.
- Long-term agreements (LTAs) were available to many clients, with some including rate decreases in the second year.
Cyber insurance rate declines
Cyber insurance rates decreased 7%.
- New capacity entered the region’s cyber insurance market.
- Rate decreases in the Middle East ranged from 25% to 30%, on average.
- The cyber markets in India and Africa were more challenging given the claims environment and insurers being more cautious.