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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.

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.
  • Organisations 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.