According to Marsh’s Global Insurance Market Index, the United Arab Emirates (UAE) and Saudi Arabia benefited most from high reinsurance capacity, strong competition, and a favorable market environment. Property insurance premiums fell by 5 to 10 percent, while financial and professional lines as well as cyber insurance also became significantly cheaper. Casualty rates remained stable to slightly lower.

«Across the Middle East, the market is highly competitive with robust capacity,» said Omar Gemei, Head of Global Placement, Marsh IMEA. «Clients in the UAE and Saudi Arabia are achieving better terms and broader coverage – particularly in property and financial lines.»

Broad Range of Risks

Despite falling prices, Gemei emphasized the importance of resilience: companies are using the current market environment to strengthen their coverage and prepare for emerging risks such as cyberattacks, supply chain disruptions, and climate-related exposures.

In early September, the state-run UAE Cyber Security Council warned that 70 percent of smart home devices are vulnerable to hacking, urging families to strengthen passwords, perform regular updates, and improve privacy settings. In the UAE, the line between personal and commercial devices is often blurred, as around 80 percent of businesses are family-owned.

Competition Drives Discounts

In the third quarter of 2025, insurance premiums in the Middle East declined sharply. Property rates fell by up to 10 percent, driven by ample capacity and intense competition.

Casualty premiums remained stable to slightly lower, while financial lines dropped by 5 to 15 percent.

Cyber insurance saw reductions of up to 15 percent, fueled by new market entrants and expanding sector capacity.

Conclusion: The market remains clearly buyer-friendly, offering lower prices and broader coverage across nearly all lines. Globally, the Marsh Index recorded an average 4 percent decline in commercial insurance rates – the fifth consecutive quarterly drop – underscoring the ongoing trend of declining prices and growing capacity across major markets.