By Venkatachari Jagannathan
Global insurance broking and risk advisor major Marsh said that the commercial insurance rates in India continued to decline through the first three quarters of 2026, owing to strong insurer capacity and increased market competition.
According to Marsh’s Global Insurance Market Index, property, financial and professional, and cyber insurance rates all declined in India during 2026, with the country recording some of the largest rate reductions across India, the Middle East and Africa (IMEA) region.
Property insurance rates continue to decline amid strong competition
Property insurance rates in India declined for the fourth consecutive quarter, as increased capacity and insurer competition continue to create more favourable conditions for buyers.
In the first quarter, some Indian clients experienced property rate decreases of up to 45%, although reductions were typically lower, against an IMEA average decrease of 10%, Marsh said.
Competition strengthened as the year progressed, supported by ample insurer capacity and the removal of tariffs in India. These conditions have increased competition among insurers for well-managed risks and provided businesses with greater negotiating leverage around pricing, coverage, limits, and policy terms.
Financial and professional lines benefit from increased insurer appetite
Financial and professional lines rates also continued to decline in India for the fourth consecutive quarter, supported by strong insurer appetite and available capacity.
In the first quarter, directors’ and officers’ liability rates decreased by as much as 20% in India, while professional indemnity rates also recorded reductions.
The sustained competition across these lines is providing businesses with opportunities to reassess limits, deductibles, and coverage structures rather than focusing solely on premium reductions.
Cyber rates fall for the twelfth consecutive quarter
Cyber insurance rates declined for the twelfth consecutive quarter across IMEA, reflecting continued competition and increased insurer capacity. India recorded the steepest cyber rate decreases in the region during the third quarter, while the IMEA average declined 10%.
Despite declining rates, the cyber risk environment continues to evolve. Increasing digital dependence, emerging technologies, and the changing nature of cyber threats mean businesses have an opportunity to use favourable market conditions to strengthen protection and ensure coverage keeps pace with their changing exposures.
Favourable conditions create an opportunity to strengthen resilience
While declining rates are reducing insurance costs for many organisations, the broader significance of the current market lies in the increased choice available to buyers. Greater capacity and competition are allowing businesses to consider improvements to coverage, limits, deductibles, and policy terms while reassessing how their insurance programmes respond to emerging and interconnected risks.
As geopolitical uncertainty, cyber threats, supply chain disruption, and natural catastrophe exposures continue to evolve, Marsh recommends businesses use current market conditions to review the resilience of their insurance programmes and ensure they are positioned for a potential change in the insurance cycle.
(Venkatachari Jagannathan can be reached at venkatacharijagannathan@gmail.com)