India commercial insurance rates fall sharply in Q2; cyber cover sees 25-30% decline: Marsh

Commercial insurance market conditions in India remained favourable in the second quarter of 2026, with strong insurer competition and ample capacity driving lower rates across several major insurance lines, according to Marsh’s latest Global Insurance Market Index.

Insurance rates in India declined sharply in cyber, professional indemnity and directors’ and officers’ (D&O) liability insurance during the quarter. Cyber insurance rates fell 25% to 30%, while professional indemnity rates declined 20% to 25%. D&O liability rates dropped 15% to 20%.

Property insurance rates fell 19% in the second quarter, compared with a 10% decline in the previous quarter. Marsh said capacity remained available in the market, supported by the removal of tariffs, while increased local competition added to pricing pressure.

Casualty insurance rates declined 3% during the quarter, compared with a 7% fall in the previous quarter. Capacity remained stable, although insurers continued to consider exposure to US risks when assessing underwriting appetite.

Financial and professional lines recorded a 6% decline in rates, broadly unchanged from the previous quarter. Within this segment, professional indemnity rates fell 20% to 25% in India, while D&O liability rates declined 15% to 20%. Rates for financial institutions insurance remained stable.

Cyber insurance also saw a sharp correction. While cyber rates declined 14% across the IMEA region, India recorded a steeper 25% to 30% reduction, reflecting increased insurer competition and available capacity.

“The current insurance market presents a strong opportunity for Indian businesses, with rates softening across several major insurance lines, including cyber, professional indemnity and D&O liability,” said Sanjay Kedia, CEO, Marsh India.

Kedia said businesses could use the favourable pricing environment to review their insurance programmes, improve coverage and increase limits where required, rather than focusing only on lower premiums.

Gaurav Pagare, Sales and Placement Leader, Marsh India, said the increased competition in cyber insurance was giving businesses an opportunity to negotiate broader coverage, including protection against ransomware, business interruption and incident response.

Globally, commercial insurance rates fell 6% in the second quarter of 2026, marking the eighth consecutive quarterly decline, according to the Marsh index.