Commercial insurance rates across the Middle East and wider IMEA region declined sharply in the first quarter of 2026, reflecting strong competition among insurers and growing market capacity, according to the latest Global Insurance Market Index by Marsh.
Rates across the India, Middle East, and Africa (IMEA) region fell by an average of 10 percent during the quarter, one of the steepest declines globally, as insurers competed aggressively across major lines, including property, casualty, financial, and professional liability, and cyber insurance.
The Middle East stood out as a particularly competitive market, with strong insurer appetite enabling buyers to secure improved pricing and broader coverage in several segments. Property and cyber insurance lines saw notable rate reductions, supported by increased capacity and new market entrants.
Omar Gemei, Head of Global Placement for IMEA at Marsh, said, “The first quarter continued to reflect a favorable market for many insurance buyers across the Middle East, with strong competition and healthy capacity supporting improved outcomes across several lines. In areas such as property, cyber, and selected financial lines, clients are seeing opportunities to secure broader protection and better overall value at renewal.
“At the same time, this remains a market that requires careful navigation. Regional conflict continues to affect political violence placements; capacity has materially reduced, and pricing for those risks has risen. Clients should use favorable conditions where they exist, but remain disciplined in how they assess exposure, structure programs, and protect balance sheets against more volatile risks.”
Property insurance rates declined by around 10 percent across the IMEA region, with reductions in the Middle East and Africa ranging between 5 percent and 20 percent. However, the report noted that ongoing regional conflict and recent weather-related events have led to significant claims, particularly in political violence and property segments.
Capacity for political violence insurance has tightened sharply, dropping from more than $1 billion to approximately $200 million, while pricing has increased significantly, highlighting a divergence within the broader market.
Casualty insurance rates fell by 7 percent across the region, with variations across markets. In the UAE, regulatory changes, such as the introduction of a new civil code that removes compensation caps for injury and death, are expected to influence underwriting dynamics.
Financial and professional lines saw a 6 percent decline overall, with directors and officers liability rates falling between 10 percent and 15 percent in the UAE and Saudi Arabia. Meanwhile, cyber insurance rates recorded the steepest drop, declining by 14 percent, driven by increased competition and new entrants in the market.
Globally, insurance rates declined by 5 percent in Q1 2026, marking the seventh consecutive quarter of decreases, with the IMEA region among those experiencing the most significant pricing corrections.
Despite the favorable pricing environment, the report cautions that risks remain uneven across the region. While buyers are benefiting from competitive conditions in many segments, geopolitical instability continues to weigh on specific risk categories, particularly those linked to conflict and political violence.
The findings suggest that while the insurance market in the Middle East is currently tilted in favor of buyers, careful risk assessment and strategic program design remain essential as the broader risk environment continues to evolve.
