Europe Insurance Market Pricing

Europe property rates influenced by recent CAT events

Property insurance rates rose 7%. 

• Property rates were influenced largely by CAT events, including earthquakes in Turkey, floods in Greece and Germany, and hailstorms in Italy.
• Capacity was abundant for clients viewed as good risks by insurers, and long-term agreements (LTAs) were more available.
• Underwriting scrutiny continued regarding catastrophe (CAT) aggregates and deductibles, limitations on cover for non-physical damage, cyber, terrorism, and strikes, riot, civil commotion (SRCC).

Casualty rates increase; capacity remains available

Casualty insurance rates increased 6%.  

• Capacity was readily available, driving competition in the mid-market.
• Insurers continued to scrutinize polyfluoroalkyl substances (PFAs) exposure, loss-impacted, and heavily exposed risks. 

Financial and professional rates decline

Financial and professional lines rates declined 7%.   

• Capacity and insurer competition increased.
• Nearly 10% of clients reinvested premium savings to increase limits.

Cyber insurance rates decrease, particularly in excess layers

Cyber insurance rates decreased 5%.

• Nearly 80% of insureds renewed without any rate increase and with either stable or decreased retentions as insurer competition increased.
• The downward movement in rates was mostly observed in excess layers; some larger clients also saw decreases at the primary layers. 
• As rates stabilized, many clients purchased higher limits. 
• Insurers eliminated many coverage restrictions due to perceived improvements in underlying risk quality.