Digital report

IMEA Insurance Market Rates

The Global Insurance Market Index is our proprietary measure of commercial insurance rate changes at renewal. Below are insights into the India, Middle East, and Africa (IMEA) insurance market.

Q3 2024

India, Middle East, and Africa composite rate decreases

Insurance rates in the third quarter of 2024 decreased 2% in the IMEA region, where rates for large and complex organisations are often driven or influenced by the reinsurance market.

India, Middle East, and Africa (IMEA) third quarter 2024

IMEA property rates decrease, driven by competition and capacity

Property insurance rates decreased 1%, primarily due to increased competition and available capacity.

Where rates increased at renewal, the primary drivers were higher reinsurance and capital costs in catastrophe (CAT)-exposed portfolios; continued loss activity, especially due to floods experienced in the UAE; and other large losses in Saudi Arabia, India, and Africa.
Non-CAT exposed portfolios typically experienced rate decreases, as much as 40% in India and 10% in Saudi Arabia, and increases up to 5% in South Africa, with rates in the UAE stabilising.
CAT-exposed, high-hazard sectors including chemical and food, waste and recycling, and those with poor loss records faced capacity challenges.
Underwriters continued to scrutinise terms and conditions such as CAT aggregates and deductibles, limitations around contingent business interruption (CBI) extensions, cyber, terrorism, and strikes, riots, and civil commotion (SRCC).

Casualty insurance lines rates decrease

Casualty insurance rates decreased 1%.

Large organisations typically experienced flat rates to increases of 5%, while non-complex, smaller ones typically experienced decreases ranging from 5% to 10%.
In India and South Africa, rates were stable; rates generally decreased between 5% to 10% in the UAE, and remained flat to 5% decreases in Saudi Arabia.
New capacity in the region, especially on the reinsurance side, fostered competition.
Underwriters scrutinised loss-impacted and heavily exposed risks, typically seeking increased information and internal referrals.
Various insurers announced growth strategies across IMEA; however, in Africa the market remained stable.

Financial and professional lines rates decline

Financial and professional lines rates declined 7%.

Directors and officers (D&O) liability rates varied by region and country:
- India and South Africa saw flat renewals, whereas the UAE and Saudi Arabia experienced decreases between 20% and 25%, on average.
Financial institutions (FIs) in the Middle East experienced rate decreases in the 10% to 15% range, with more capacity available from London and Dubai.
- FI rates in South Africa and India were stable.
Professional indemnity (PI) markets across India and South Africa were stable; the Middle East experienced decreases in the 10% to 15% range.
In the Middle East, crime rates were stable, with limited appetite in the global markets.
Environmental, social, and governance (ESG) issues have become a greater priority for underwriters.
Long-term agreements (LTAs) were often offered, with decreases in the second year for select clients.

Cyber insurance rates continue to decline

Cyber insurance rates decreased 16%.

In the Middle East, rates declined by more than 30% in some cases; in India, rates remained stable; in South Africa, rates typically increased up to 5%.
New capacity entered the market in both excess and primary layers.
Trends across the region included:
- In the Middle East, capacity increased with new entrants and competition.
- In India and Africa, capacity and rates were comparatively stable.

Our rates reflect the segment mix of Marsh’s client portfolio.

Global Insurance Market Index

24/10/2024

The Global Insurance Market Index is our proprietary measure of global commercial insurance rate change at renewal - providing insights on the world's major insurance markets.

Aerial view of the Bay Bridge in San Francisco, CA

Global Insurance Market Index

US insurance rates

24/10/2024

Insurance rates in the third quarter of 2024 in the US increased 3%.

Skyline of London over Tower Bridge on the Thames

Global Insurance Market Index

UK insurance rates

10/24/2024

Insurance rates in the UK declined 5% in the third quarter of 2024.

Global Insurance Market Index

IMEA Insurance Market Rates

India, Middle East, and Africa composite rate decreases