Commercial insurance premiums in India experienced a sharp decline in the second quarter of 2026, with cyber cover leading the drop, reflecting a broader global trend of softening rates across major lines due to increased competition and capacity.
Commercial insurance prices in India fell sharply in the second quarter of 2026, with cyber cover recording the steepest drop as intense competition and ample insurer capacity continued to weigh on rates, according to Marsh. The broker said cyber premiums were down 25% to 30% in India, a far larger fall than the 14% decline seen across the broader IMEA region, where India sits alongside the Middle East and Africa.
Other major lines also softened. Professional indemnity rates fell 20% to 25%, while directors and officers liability cover declined 15% to 20%. Property insurance saw a 19% drop, a steeper fall than in the first quarter, as the removal of tariffs and stronger local competition increased pricing pressure. Casualty rates eased by 3%, a smaller decline than in the previous quarter, even as insurers remained cautious about US exposure.
Marsh said the broad trend reflects a softer global market. Its latest Global Insurance Market Index showed worldwide commercial insurance rates fell 6% in the quarter, marking the eighth consecutive quarterly decline. The report also found that property prices fell 12% globally, while casualty rates rose 2%, driven largely by pressures in the US market.
For Indian buyers, the change may be an opportunity rather than simply a chance to cut costs. Sanjay Kedia, chief executive of Marsh India, said companies should use the more favourable pricing to strengthen their programmes, increase limits and widen protection. Gaurav Pagare, who leads sales and placement at Marsh India, said the competition in cyber insurance is giving businesses more room to seek broader cover, including protection for ransomware, business interruption and incident response costs.
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