India Commercial Insurance Rates Tumble Up to 30% as Cyber Cover Leads Eighth Straight Quarterly Decline: Marsh
Commercial insurance premiums in India continue to soften, with rates declining as much as 30% in the latest quarter. Marsh said cyber insurance was among the key drivers, extending the market’s streak of rate reductions.
India’s commercial insurance rates fell by up to 30% as competition intensified across key business lines. Cyber insurance led the decline, marking the eighth consecutive quarter of falling rates.
NEW DELHI — Commercial Insurance: August 12, 2026— Commercial insurance buyers in India extracted some of the steepest rate cuts anywhere in the world during the second quarter of 2026, with cyber insurance premiums falling by as much as 30%, according to the latest Global Insurance Market Index (GIMI) released by Marsh.
The report, which tracks pricing trends across major commercial insurance lines worldwide, found that Indian businesses benefited from sustained insurer competition and ample underwriting capacity through April, May and June. The softening extended across property, casualty, financial and professional lines, and cyber insurance, continuing a trend that has now persisted for eight consecutive quarters globally.
Commercial Insurance: Cyber insurance rates fall furthest in India
Cyber insurance recorded the sharpest decline among all lines tracked in India, with rates dropping 25% to 30% during the quarter — a far steeper fall than the 14% average decline recorded across the wider India, Middle East and Africa (IMEA) region.
Professional indemnity insurance rates in India fell 20% to 25%, while directors’ and officers’ (D&O) liability insurance rates declined 15% to 20%, the index showed.
Gaurav Pagare, Sales and Placement Leader at Marsh India, said competitive pressure in the cyber insurance segment had intensified through the quarter. “India’s cyber insurance market has become increasingly competitive this quarter, with rates falling by 25–30%,” Pagare said, adding that the market conditions gave organisations room to negotiate broader coverage rather than focus solely on premium savings. He pointed to stronger protection against ransomware and enhanced support for business interruption and incident response as areas where businesses could secure gains “often at little or no additional cost.”
Sanjay Kedia, Chief Executive Officer of Marsh India, said the current market presented “a strong opportunity for Indian businesses,” with rates softening across cyber, professional indemnity and D&O liability lines. He said organisations should use the window to review their insurance programmes, enhance limits and address emerging risks rather than focus only on lower premiums, in order to build more resilient coverage before conditions eventually tighten.
Commercial Insurance: Property rates fall 19%, nearly double the previous quarter’s decline
Property insurance rates in India declined 19% during the second quarter, compared with a 10% decline in the first quarter of 2026, marking a sharp acceleration in the pace of rate reductions.
Marsh attributed the steeper fall to the continued removal of tariffs and intensifying local competition, which placed additional pricing pressure on global insurers operating in the market. Capacity remained readily available, and the report noted that favourable conditions allowed businesses to access both competitive pricing and broader coverage terms.
Commercial Insurance: Casualty and financial lines rates also soften
Casualty insurance rates in India fell 3% in the quarter, easing from a 7% decline in the first quarter. Marsh said capacity in the segment remained stable, though underwriting appetite continued to be shaped by exposure to US-related risks. Regional insurers stayed competitive on lower policy limits, while multinational insurers concentrated on larger placements, according to the report.
Financial and professional lines rates in India declined 6% overall, broadly in line with the previous quarter. Within the segment, financial institutions insurance rates held stable, while professional indemnity rates fell 20% to 25% and D&O liability rates declined 15% to 20%.
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Commercial Insurance: Part of a broader global softening
India’s rate declines came against the backdrop of a broader global trend. Commercial insurance rates fell 6% worldwide in the second quarter of 2026, Marsh said, marking the eighth consecutive quarterly decline. The firm attributed the sustained softening to strong insurer competition and abundant capacity across major product lines, which continued to create openings for businesses to strengthen risk protection alongside lower pricing.
Beyond pricing, Marsh said insurers were increasingly competing on broader coverage terms and enhanced policy conditions, giving organisations scope to review and optimise their insurance programmes as they navigate an increasingly complex risk landscape.
Commercial Insurance: About Marsh
Marsh (NYSE: MRSH) is a global leader in risk, reinsurance and capital, people and investments, and management consulting, advising clients in 130 countries. The firm reports annual revenue of $27 billion and more than 95,000 colleagues worldwide.
