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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 IMEA insurance market.

Q1 2024

India, Middle East, and Africa (IMEA) rates declines in all major product lines

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

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

IMEA property rates decline

Property insurance rates declined 1%.

  • Some companies in India and parts of the Middle East experienced rate decrease of 10% to 15%.
  • Rate increases were driven primarily by higher reinsurance and capital costs in CAT-exposed portfolios, as well as capacity demand and ongoing loss activity, particularly in India and Africa.
  • Organizations in sectors such as plastics, pharmaceuticals, chemicals, food, waste, and recycling, or those with significant loss histories, faced capacity challenges and rate increases.
  • Underwriters scrutinized areas including CAT aggregates and deductibles, limitations on contingent business interruption (CBI) extensions, cyber coverage, and terrorism and strike, riots and civil commotion (SRCC).

Casualty insurance capacity increases

Casualty insurance rates decreased 2%.

  • New capacity in the region, especially from reinsurers, fostered increased competition.
  • Insurers remained cautious regarding loss-impacted and heavily exposed risks, with increased information requirements and internal referrals.
  • In South Africa, long-term agreements (LTAs) were often available, typically of a two-year duration.

Financial and professional rates continue decline

Financial and professional lines rates declined 5%.

  • Directors and officers (D&O) liability rates varied by country:
    • India and Middle East saw decreases generally between 10% and 25%.
    • South Africa rates and capacity stabilized, with inflationary rate increases being applied.
  • Financial institutions (FIs) in the Middle East generally saw rates decrease by 5% to 15%; rates in South Africa and India increased, generally between 10% and 20%.
  • Professional indemnity cover across the region was stable in terms of capacity, with rates decreasing slightly in most geographies, with the exception of South Africa, where rates generally experienced small increases.
  • Underwriters continued to pay more attention to clients’ environmental, social, and governance (ESG) risk profiles.

Cyber insurance rate environment improves

Cyber insurance rates decreased 6%.

  • Decreases were driven by low claims activity and new capacity entering the market in both excess and primary layers.
  • In the Middle East, clients typically benefitted from increased capacity offered by new market entrants, increased competition among insurers, and aggressive pricing.
  • In India, the market was more challenging due to the claims environment, cautious insurer appetite, and limited local capacity.
  • In South Africa, rates increased slightly.
    • Local placements typically saw ransomware restrictions lifted for well-managed risks.
    • Limited capacity in South Africa made for larger placements offshore.