Insurance buyers in India are benefiting from a significantly softer market, with prices for corporate cover falling sharply due to heightened competition from domestic and international insurers, especially in cyber and property risks.
Insurance buyers in India are enjoying a softer market for corporate cover, with prices falling sharply in the June quarter as insurers and reinsurers competed for business. According to Marsh India, rates for protection against fire, cyber breaches, professional liabilities and directors’ and officers’ claims all moved lower, reflecting a market flush with capacity from both domestic and overseas players.
Cyber insurance saw the steepest drop, with prices down 25% to 30%, while fire cover fell 19%. Professional indemnity declined 20% to 25%, and directors’ and officers’ liability eased 15% to 20%, Marsh said. Gaurav Pagare, Marsh India’s sales and placement leader, told the company’s clients that the market had become highly favourable to buyers, with many insurers prioritising premium growth over profitability.
The pressure on premiums is being intensified by fresh reinsurance capacity flowing through GIFT City, where more than two dozen reinsurers are now operating. Marsh said premium volume there has increased elevenfold over five years to about $1.2bn, adding to competition across a broad range of commercial lines. The lower pricing is also changing policy structures: cyber policies are now more likely to include cover for ransomware and business interruption, risks that were once available only from a narrow pool of insurers.
Marsh said the easing in rates has persisted even though losses have not disappeared, with major claims still appearing in property, casualty and cyber. That suggests supply, not weaker risk, is driving the market. Clients are using the cheaper environment to buy higher limits rather than accept larger deductibles, reversing the trade-off seen during the harder market two years ago. Globally, Marsh’s Q2 2026 index showed commercial insurance rates down 6%, the eighth straight quarterly decline, while the IMEA region posted the largest composite fall at 16%, underscoring how broad the softening has become.
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