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What is the story about?
Property insurance rates in India declined for the fourth consecutive quarter, with some clients seeing reductions of up to 45% in the first quarter of 2026, as increased insurer capacity and competition put downward pressure on premiums, according to Marsh’s Global Insurance Market Index.
The insurance broker said commercial insurance rates in India also declined across financial and professional liability and cyber insurance during the first three quarters of 2026.
India recorded some of the steepest rate reductions across the India, Middle East and Africa (IMEA) region.
In the first quarter, directors’ and officers’ (D&O) liability insurance rates in India fell by as much as 20%, while professional indemnity insurance rates also declined, Marsh said in its report released on October 21.
Property insurance rates decline for fourth consecutive quarter
Some Indian clients experienced property insurance rate reductions of up to 45% in the first quarter of 2026, although the decreases were typically lower, Marsh said. For comparison, the average property insurance rate decline across the IMEA region was 10% in the first quarter.
The report attributed the continued decline in Indian property insurance rates to increased insurer capacity and competition, supported by the removal of tariffs in India. Insurers have competed more actively for well-managed risks, giving businesses greater scope to negotiate premiums, coverage limits and policy terms.
D&O and professional indemnity insurance rates fall
Financial and professional insurance rates in India also declined for the fourth consecutive quarter. D&O liability insurance rates fell by up to 20% in the first quarter, while professional indemnity insurance rates also recorded reductions, according to Marsh.
D&O insurance covers certain claims against company directors and officers arising from their managerial decisions and actions, subject to policy terms. Professional indemnity insurance generally covers specified claims arising from professional services, errors or omissions.
Marsh said businesses could use the competitive market to review coverage limits, deductibles and policy structures rather than focusing solely on reducing premiums.
Cyber insurance rates fall for 12th consecutive quarter
Cyber insurance rates declined for the 12th consecutive quarter across the IMEA region. India recorded the steepest cyber insurance rate decreases in the region in the third quarter of 2026, while the regional average fell 10%, Marsh said.
Despite lower rates, businesses continue to face evolving cyber risks as digital dependence increases and emerging technologies change the nature of potential threats. Companies can use the current market conditions to review whether their cyber insurance coverage adequately reflects their exposures.
What declining insurance rates mean for businesses
Increased insurer capacity and competition can give businesses more opportunities to negotiate premiums, coverage limits, deductibles and policy terms. However, the actual premium and coverage available will depend on a company's risk profile and policy conditions.
Marsh said businesses should use the current market conditions to reassess their insurance programmes amid risks from geopolitical uncertainty, cyber threats, supply chain disruptions and natural catastrophes. It also advised companies to consider the possibility of a change in the insurance cycle when reviewing their coverage.
The insurance broker said commercial insurance rates in India also declined across financial and professional liability and cyber insurance during the first three quarters of 2026.
India recorded some of the steepest rate reductions across the India, Middle East and Africa (IMEA) region.
In the first quarter, directors’ and officers’ (D&O) liability insurance rates in India fell by as much as 20%, while professional indemnity insurance rates also declined, Marsh said in its report released on October 21.
Property insurance rates decline for fourth consecutive quarter
Some Indian clients experienced property insurance rate reductions of up to 45% in the first quarter of 2026, although the decreases were typically lower, Marsh said. For comparison, the average property insurance rate decline across the IMEA region was 10% in the first quarter.
The report attributed the continued decline in Indian property insurance rates to increased insurer capacity and competition, supported by the removal of tariffs in India. Insurers have competed more actively for well-managed risks, giving businesses greater scope to negotiate premiums, coverage limits and policy terms.
D&O and professional indemnity insurance rates fall
Financial and professional insurance rates in India also declined for the fourth consecutive quarter. D&O liability insurance rates fell by up to 20% in the first quarter, while professional indemnity insurance rates also recorded reductions, according to Marsh.
D&O insurance covers certain claims against company directors and officers arising from their managerial decisions and actions, subject to policy terms. Professional indemnity insurance generally covers specified claims arising from professional services, errors or omissions.
Marsh said businesses could use the competitive market to review coverage limits, deductibles and policy structures rather than focusing solely on reducing premiums.
Cyber insurance rates fall for 12th consecutive quarter
Cyber insurance rates declined for the 12th consecutive quarter across the IMEA region. India recorded the steepest cyber insurance rate decreases in the region in the third quarter of 2026, while the regional average fell 10%, Marsh said.
Despite lower rates, businesses continue to face evolving cyber risks as digital dependence increases and emerging technologies change the nature of potential threats. Companies can use the current market conditions to review whether their cyber insurance coverage adequately reflects their exposures.
What declining insurance rates mean for businesses
Increased insurer capacity and competition can give businesses more opportunities to negotiate premiums, coverage limits, deductibles and policy terms. However, the actual premium and coverage available will depend on a company's risk profile and policy conditions.
Marsh said businesses should use the current market conditions to reassess their insurance programmes amid risks from geopolitical uncertainty, cyber threats, supply chain disruptions and natural catastrophes. It also advised companies to consider the possibility of a change in the insurance cycle when reviewing their coverage.
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