Continental Europe Q3 2021 |Global Insurance Market Index

Continental Europe: Some Stability in Property and D&O Lines

Insurance pricing in the third quarter of 2021 in Continental Europe (CE) increased 10%.

Continental Europe Insurance Pricing - Q3 2021

Constant bar chart represents Global Insurance Composite Pricing Change.

Property insurance pricing in CE rose 12%.

Rates generally stabilized, although increases remained common across all sectors, predominantly for CAT-exposed risks, but at a slightly reduced level compared to prior quarters.
Competition for new business increased among Europeandomestic carriers.
Insurers continued strict underwriting controls, particularly for large complex multinational clients; those with a better loss history or that demonstrated good risk mitigation controls attracted more favorable terms.
The significant losses experienced during 2021, such as the European floods, are likely to destabilize the market in the near term, particularly in affected areas.
Changes in wordings and an aggressive approach by carriers remained a challenge as they sought to apply exclusions, particularly for communicable disease and cyber.

Casualty insurance pricing increased 5%, the ninth consecutive quarterly increase.

Excess casualty and US-exposed placements continued to be the most challenging sectors.
Most countries in the region experienced general liability pricing increases in the single digits, but some as high as 20%.
Some insurers expressed particular concerns around social inflation and US auto exposure; auto pricing remained generally stable.
Some clients experienced increases in workers’ compensation, ngenerally due to limited capacity.

Financial and professional lines pricing increased 14%.

There was some stability in the D&O market in the quarter, driven by increases in insurer competition and capacity. However, major D&O programs in distressed sectors or with US exposures continued to affect pricing, with sizeable rates increases.
Average pricing increases for FI and professional liability generally ranged from 5% to above 20% across the region.
Sizeable rate increases continued for cyber insurance, with carriers reducing exposure and increasing rates by 60% and greater, a trend expected to continue for the remainder of 2021.

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