India's commercial rates plunge up to 25% in Q4

Regional reinsurer participation increased across property financial lines and cyber markets.

Commercial insurance rates in India fell sharply in the fourth quarter of 2025 (Q4 2025) as capacity expanded and competition intensified, according to the latest Global Insurance Market Index from Marsh. 

The India, Middle East and Africa (IMEA) region recorded an average 10% decline, with India seeing steeper reductions across property, financial lines and cyber insurance.

Property insurance rates in India dropped 15% to 25%, compared with 5% to 15% declines in the Middle East and Africa. 

Catastrophe-exposed and high-hazard sectors such as chemicals, food, waste and recycling saw cuts of up to 20% in India. Increased participation from regional and multinational reinsurers lifted capacity and competition across markets.

Casualty insurance rates in India ranged from flat to declines of up to 20%, broadly in line with regional trends where average rates fell about 5%. 

Capacity remained ample, although insurers continued to factor in US casualty exposures when deploying limits in the region.

Financial and professional lines saw some of the largest reductions. Directors’ and officers’ liability rates in India fell 20% to 25%, whilst financial institutions and professional indemnity covers declined 15% to 20%. 

The easing reflected additional insurer capacity from London and Dubai markets and sustained competitive conditions.

Cyber insurance pricing in India decreased 10% to 15% as new entrants expanded capacity, compared with 5% to 10% declines in the Middle East. 

Insurers remained cautious given evolving cyber risk exposures.

The regional trend mirrors global conditions. Marsh said global commercial insurance rates fell 4% in Q4 2025, the sixth consecutive quarterly decline after seven years of increases, driven by favourable loss experience, higher insurer capacity and stronger competition.

Marsh said India’s softer pricing environment comes as the market matures alongside economic growth, infrastructure investment and digitalisation. 

However, the broker noted that rising climate exposures, supply-chain interdependence and cyber threats are reshaping corporate risk, suggesting firms may use current pricing conditions to secure broader cover and strengthen resilience.