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Digital report

Europe Insurance Market Rates

The Global Insurance Market Index is our proprietary measure of commercial insurance rate changes at renewal. Below are insights into the European insurance market. 

Q1 2024 

European composite rates increase at slower pace

Insurance rates in Europe increased 3% in the first quarter of 2024.

Europe first quarter 2024

Europe composite insurance rate change 

Europe property

Property rates continue to rise

Property insurance rates rose 5% compared to a 7% increase in the prior quarter.

  • Underwriters scrutinized natural catastrophe exposed organizations, although capacity was generally available.
  • Companies with natural catastrophe exposure generally saw above average price increases, capacity reductions, increased deductibles, and scrutiny of limits.
  • Capacity and price challenges also continued for heavy occupancy or distressed businesses, such as those with losses and/or those perceived by insurers as having substandard risk management.
  • Long term agreements (LTAs) were offered in many cases. 
  • Ongoing political and societal tensions drove some insurers to seek sub-limit adjustments and coverage restrictions in strikes, riots and civil commotion (SRCC) coverage.  

Europe casualty

Casualty rates increase as capacity reductions ease

Casualty insurance rates increased 5%.

  • Rates were generally stable across Europe, with the exception of the Nordic countries, where substantial increases were seen on complex and US-exposed risks.
  • Concerns over exclusionary language related to biometric data and data privacy, with emerging concern relating to per- and polyfluoroalkyl (PFAS) substances.
  • Capacity reductions by major insurers eased.

Europe financial and professional lines

Financial and professional rates decline on increased insurer competition

Financial and professional lines rates declined 7%. 

  • For directors and officers (D&O) liability insurance, capacity and insurer competition increased.
  • Many large D&O programs renewed with LTAs, some with a slight premium decrease factored in for the second year.
  • Some clients reinvested premium savings to increase limits on other programs, such as crime.

Cyber insurance rates decrease for second consecutive quarter

Cyber insurance rates decreased 7%.

  • Insureds with higher revenues (>€250 million) and effective cybersecurity controls typically experienced greater rate decreases.
  • The downward movement in rates was observed primarily in excess layers, although some larger companies also found savings at the primary and first excess program layers.
  • Many clients adjusted program structures, for example, increasing limits or reducing retentions.
  • The awareness of cyber risks has also led to an increase in new clients entering the market.
  • Underwriters paid particular attention to digital supply chain management.

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