IMEA Insurance Market Rates

IMEA property rates decline

Property insurance rates decreased 4% as demand and competition increased.

• Catastrophe-exposed sectors and high-hazard industries with poor loss records — including chemical, food, waste, and recycling — faced capacity constraints and rate hikes of 10% to 25%.
• Regional insurers and multinational reinsurers typically looked to expand their property portfolios across IMEA for diversification, fostering competition and a decrease in rates in the first quarter, particularly in the Middle East and Africa.

Casualty insurance composite rate flat, underwriters scrutinize US exposures

Casualty insurance rates remained flat.

• Capacity-driven risks experienced rates from flat to increases of 5%, while non-complex, lower-capacity risks typically saw reductions ranging from 5% to 10%.
• Rates in India, the UAE, and South Africa were stable, while Saudi Arabia experienced rates from flat to decreases of 5%.
• US-based exposures significantly influenced insurer appetite and capacity deployment in the region.
• The introduction of new capacity, particularly in reinsurance, contributed to a competitive environment.

Financial and professional lines rates decline, vary regionally

Financial and professional lines rates declined 6%.

• Directors and officers (D&O) liability rates varied across the region: India remained flat, South Africa saw increases of 5% to 10%, and UAE and Saudi Arabia experienced decreases of 20% to 25%.
• Financial institutions (FI) in the Middle East saw rate reductions of 10% to 15%, supported by increased capacity from London and Dubai. In India, FI rates remained stable, with insurers reducing capacity or deploying lower limits.
• The professional indemnity (PI) market in India remained stable, South Africa experienced increases of 5% to 10%, and the Middle East experienced decreases of 15% to 20%.

Cyber insurance rates decline as capacity increases

Cyber insurance rates decreased 8%.

• The Middle East experienced declines of 15% to 20% and higher, India remained stable, and South Africa saw slight increases in the range of 5% to 10%.
• There was also an influx of new capacity, particularly in excess and primary layers.
• In the Middle East, increased capacity was driven by new entrants, competition among insurers, and aggressive pricing. Insurers in India and South Africa were more cautious.

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