UK Insurance Market Rates

UK property insurance rates decline

Property insurance rates decreased 4%.

• Long-term agreements (LTAs) were offered on many placements; some included built-in reductions in the second or third years.
• Flooding in Europe and hurricane season in North America were watched for potential impacts on markets.
• Secondary peril activity continued to be a concern.
• Competition increased for organizations deemed by insurers as having excellent risk management practices.
• Cyber clauses remained a discussion point with insurers.

Casualty rates increase, driven by auto liability

Casualty insurance rates increased 1%; excluding motor liability, casualty rates decreased 6%.

• Insurers remained cautious regarding organizations with US exposure.
• Insurers sought to retain existing clients and strategically targeted new business opportunities; some included wider coverage as a differentiator.
• LTAs were available.
• Employer liability rates were generally flat to decreases of 10%.
• Insurer competition continued to drive general liability rate decreases.
• Motor liability rates continued to increase as insurers reported 2023 as the worst-performing year in over a decade.
  • Sectors such as passenger transport and logistics typically experienced increases, while greater competition was observed for private car and van fleets.
  • Increased cost of care, which includes those injured in automobile collisions, reached 25% due in part to limitations on available care providers.

Financial and professional lines rates decline, led by D&O

Financial and professional lines rates declined 10%.

• Directors and officers (D&O) liability rates declined between 5% and 15%, on average.
  • The UK D&O market provided ample capacity and showed increased competition.
  • LTAs were offered in some cases.
• Capacity was abundant in the financial institution (FI) market.
• Capacity was also abundant in the commercial crime market, with insurers typically offering greater line sizes, broader terms, and lower retentions.

Cyber insurance rates continue to decline amid insurer competition

Cyber insurance rates decreased 8%.

• The inflow of capacity into the market continued from both incumbent and new insurers.
• Since the second half of 2022, the cyber insurance market has seen increased competition from existing carriers, as well as new players in both the UK and international markets, resulting in generally reduced rates and more extensive coverage.
• Clients with annual revenues greater than £250 million typically experienced greater rate decreases.

Our rates reflect the segment mix of Marsh’s client portfolio.