Commercial insurance rates across the India, Middle East and Africa (IMEA) region declined by 16 per cent in the second quarter of 2026, the largest reduction recorded globally, as abundant underwriting capacity and intensified competition among insurers continued to drive down premiums.
The latest Global Insurance Market Index (GIMI) released by Marsh, a global insurance broker showed that the IMEA region outperformed every other market in terms of premium reductions, ahead of the Pacific region, where rates fell by 13 per cent, and Latin America and the Caribbean, which recorded a 9 per cent decline.
Globally, commercial insurance rates fell by an average of 6 per cent during the quarter, extending a downward trend for the eighth consecutive quarter after a 5 per cent decline in the first quarter of the year.
According to Marsh, the sustained decline reflects strong insurer profitability, surplus capital, lower reinsurance costs and improved investment returns, all of which have intensified competition across major insurance lines.
The report noted that insurers are increasingly competing not only on price but also by offering broader policy coverage, improved policy terms and lower deductibles to attract corporate customers.
John Donnelly, president, Global Placement at Marsh Risk, said insurers in many markets are seeking to differentiate themselves beyond pricing.
“In many markets, in addition to competing based on price, insurers are seeking to differentiate themselves through broader coverage, expanded policy terms, and lower deductibles. While economic uncertainty has led many buyers to retain premium savings, many organisations are also continuing to invest in alternative risk strategies, including captives,” he said.
Among individual insurance classes, property insurance recorded the sharpest decline globally, with premiums falling 12 per cent following a 9 per cent reduction in the previous quarter. The IMEA region again posted the largest drop, with property insurance rates falling by 19 per cent.
Cyber insurance also continued its downward trajectory, declining by 4 per cent globally for the twelfth consecutive quarter. The IMEA region led all markets once more, recording a 14 per cent fall in cyber insurance rates, significantly higher than reductions seen elsewhere.
Casualty insurance, however, remained an exception to the broader trend. Global casualty rates increased by 2 per cent, largely due to continued pricing pressure in the United States, where premiums rose by 7 per cent amid heightened underwriting scrutiny and concerns over litigation risks.
Similarly, financial and professional lines insurance premiums declined by 3 per cent globally, although underwriting conditions became more selective as the market continued to stabilise following several quarters of falling rates.
Marsh said the favourable pricing environment is expected to persist unless disrupted by a severe northern hemisphere storm season or a series of major natural catastrophes capable of generating significant insured losses.
Donnelly said the prevailing market conditions present organisations with an opportunity to strengthen their insurance programmes while premiums remain competitive.
“Current market conditions are likely to persist absent a severe northern hemisphere storm season or string of major natural catastrophes. This is likely to create additional opportunities for clients to improve coverage and refine programme design, better positioning them for future market changes,” he said.
