Europe Insurance Market Rates

Property rate increases continue to slow / nearly flat

Property insurance rates increased 1%, continuing a moderation in the pace of increases.

• Strong insurer financials drove increased capacity and generally improved rates and coverage options.
• Long-term agreements (LTAs) continued to be offered.
• Underwriters continued to scrutinize insureds with natural catastrophe (Nat Cat) exposures, significant losses, and those perceived to need risk management improvements.

Casualty rates increase, at slower pace

Casualty insurance rates increased 2%.

• Casualty lines rates across Europe remained generally stable.
• Underwriters continued to scrutinize loss-affected and US-exposed risks.
• Capacity generally remained stable, though some insurers limited deployment for US-exposed risks as concern continued for large jury awards and settlements.
• Areas of concern included per- and polyfluoroalkyl substances (PFAS).

D&O rates continue to decline

Financial and professional lines rate decreased 7%.

• Decreases in directors and officers (D&O) liability insurance rates were experienced by many clients, particularly in excess layers.
  • Many large D&O programs renewed with LTAs, often with decreases available in the second year.
• The commercial crime market saw rate decreases due to increased competition.
• Rates for employment practices liability (EPL) insurance and pension trustee liability (PTL) insurance were generally flat.
• Some clients increased limits and invested more in other programs, such as crime, and/or achieved coverage improvements , particularly related to D&O and environmental, social, and governance (ESG) exposure.

Cyber insurance rates decrease as cybersecurity improves

Cyber insurance rates decreased 11%.

• Rates decreased for many clients, with pricing depending in large part on industry, perceived risk quality, and company size.
  • Insureds with revenues above EUR250 million and cybersecurity controls perceived by insurers as effective typically experienced greater rate decreases.
  • Rate decreases were generally observed in excess layers; larger organizations also generally experienced savings at the primary and first excess layers.
• Capacity and competition continued to increase as new insurers entered the market and incumbents deployed more capacity.
• Underwriters scrutinized digital supply chain management.

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