Europe Insurance Market Rates

Property rate increases continue to slow

Property insurance rates increased 2%, continuing a long moderation in the pace of increases.

• Natural catastrophe exposed organizations continued to experience the greatest challenges; however, the pace of increases slowed, and some insureds saw reductions.
• Long-term agreements (LTAs) were offered in many cases.
• Capacity and price challenges continued for heavy occupancy or distressed businesses, such as those with losses and/or those perceived by insurers as having substandard risk management.
• Underwriters focused on ongoing political circumstances and societal tensions in coverages such as political violence and strikes, riots, and civil commotion (SRCC).

Casualty rates increase

Casualty insurance rates increased 4%.

• Casualty rates were generally stable across Europe, with exceptions seen in loss-affected and US-exposed risks.
• Exclusionary language for per- and polyfluoroalkyl substances (PFAS) was typically negotiable with insurers.

Financial and professional lines capacity increases

Financial and professional lines rates declined 3%.

• Most directors and officers (D&O) liability clients experienced rate reductions.
• Long-term agreements (LTAs) were available in many cases, some with reductions built in for the second year.
• Capacity increased as new insurers entered the market and incumbents deployed more capital.
• Some clients were able to negotiate wording and other innovations, particularly related to D&O and environmental, social, and governance (ESG) exposures.

Cyber insurance rates continue to decrease

Cyber insurance rates decreased 7%.

• Pricing depended largely on industry, perceived risk quality, and company size.
  • Insureds with revenues above EUR250 million and effective cybersecurity controls typically experienced greater rate decreases.
  • The downward movement in rates was observed mainly in excess layers; larger accounts also generally experienced savings at the primary and first excess layers.
• Coverage restrictions were eliminated on accounts due to perceived improvements in underlying risk quality and increased flexibility on the insurer's side.
• Underwriters paid particular attention to digital supply chain management.