India’s property insurance rates fall up to 45% amid excess capacity: Marsh

Property insurance rates fell for the fourth consecutive quarter, as increased capacity and competition among insurers improved pricing conditions for buyers. “Some Indian clients experienced property rate decreases of up to 45%,” the report said. The insurance broker sid competition intensified as the year progressed, supported by ample insurer capacity and the removal of tariffs in India. Insurers increasingly competed for well-managed risks, giving businesses greater negotiating power on pricing, coverage, policy limits and terms.

The report’s findings are corroborated by industry data. Gross direct premium income (GDPI) of general insurers in the fire insurance segment fell 27% year-on-year to ₹12,768.73 crore during April–September. According to Marsh, rates for financial and professional lines also declined for the fourth consecutive quarter, supported by strong insurer appetite and available capacity. Directors’ and officers’ (D&O) liability rates fell by as much as 20% in India in the first quarter, while professional indemnity rates also declined.

Cyber insurance rates across IMEA fell for the 12th consecutive quarter, reflecting increased capacity and competition. India recorded the steepest declines in cyber insurance rates in the region in the third quarter, compared with an average reduction of 10% across IMEA. Despite the decline in rates, evolving cyber threats and businesses’ growing dependence on digital technologies continue to reshape risk exposures, the report noted.

“While declining rates are reducing insurance costs for many organizations, the broader significance of the current market lies in the increased choice available to buyers,” Marsh added.