Skip to main content

Digital report

IMEA Insurance Market Pricing

The Global Insurance Market Index is our proprietary measure of commercial insurance rate changes at renewal. Below are insights into the IMEA insurance market.

Q4 2023 

India, Middle East, and Africa (IMEA) pricing: Financial and professional lines rates decline

Insurance rates in the fourth quarter of 2023 increased 4% 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) fourth quarter 2023

IMEA property rates increase

Property insurance rates increased 6%, compared to 4% in the prior quarter.

  • Rate increases were influenced by higher reinsurance and capital costs in catastrophe (CAT) exposed portfolios, capacity demand, and continued loss activity, especially in Saudi Arabia, India, and Africa.
  • Insurers scrutinized terms and conditions including CAT aggregates and deductibles, limitations around contingent business interruption (CBI) extensions, cyber, terrorism, and strikes, riot, civil commotion (SRCC).
  • Global insurers’ interest in the Middle East declined; however, regional insurers and reinsurers fostered competition. 

Casualty insurers increase competition

Casualty insurance rates increased 1% after being flat in the prior quarter.

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

Financial and professional rates decline

Financial and professional lines rates declined 4%, the same as in the prior quarter.

  • Directors and officers (D&O) liability rates varied by country — flat in India, declines of between 15% and 20%, on average in the Middle East; and ranging from flat to 10% increases in South Africa.
  • Financial institutions (FIs) in the Middle East generally saw rates decrease by 5% to 10%; rates in South Africa and India were stable.
  • Professional indemnity cover across the region were stable in terms of capacity, with rates decreasing slightly.
  • Underwriters continued to pay more attention to clients’ environmental, social, and governance (ESG) risk profile.

Cyber insurance rates decrease; claims activity declines

Cyber insurance rates decreased 6%, compared to a 1% increase in the prior quarter.

  • Rate decreases were influenced by low claims activity, a decrease in the frequency and severity of ransomware claims, and new capacity entering the market in both excess and primary layers.
  • In the Middle East, increased capacity and new entrants, increased competition, and more aggressive pricing.
  • In India and Africa, the market was more challenging due to the claims environment, cautious insurer appetite, and/or a lack of local capacity.

This document and any recommendations, analysis, or advice provided by Marsh (collectively, the ‘Marsh Analysis’) are not intended to be taken as advice regarding any individual situation and should not be relied upon as such. This document contains proprietary, confidential information of Marsh and may not be shared with any third party, including other insurance producers, without Marsh’s prior written consent. Any statements concerning actuarial, tax, accounting, or legal matters are based solely on our experience as insurance brokers and risk consultants and are not to be relied upon as actuarial, accounting, tax, or legal advice, for which you should consult your own professional advisors. Any modelling, analytics, or projections are subject to inherent uncertainty, and the Marsh Analysis could be materially affected if any underlying assumptions, conditions, information, or factors are inaccurate or incomplete or should change. The information contained herein is based on sources we believe reliable, but we make no representation or warranty as to its accuracy. Except as may be set forth in an agreement between you and Marsh, Marsh shall have no obligation to update the Marsh Analysis and shall have no liability to you or any other party with regard to the Marsh Analysis or to any services provided by a third party to you or Marsh. Marsh makes no representation or warranty concerning the application of policy wordings or the financial condition or solvency of insurers or re-insurers. Marsh makes no assurances regarding the availability, cost, or terms of insurance coverage. LCPA 24/031.