Europe Insurance Market Rates

Property rates decline, driven by insurer competition

Property insurance rates declined 1% amid greater insurer competition and ample capacity.

• Larger organizations generally experienced more favorable pricing compared to the middle market, despite increased appetite from insurers for middle market companies.
• Cyber clauses remained a key discussion point with underwriters.
• Ongoing economic and political pressures in major European countries negatively affected certain industries, leading to decreased business interruption (BI) values, particularly in the automotive sector.
• Long-term agreements (LTAs) were commonly available in most European markets as insurers prioritized retention and growth.

Casualty rates increase, US exposures remain a key factor

Casualty insurance rates increased 2%.

• Increases were driven by general liability clients with US exposure and shifts in workers' compensation/employers' liability in larger markets like Belgium and Italy.
• Most European organizations without US exposure renewed at flat rates due to increased competition and insurer growth targets.
• Coverage terms remained generally stable, though some exclusionary wording for biometric data was being introduced.

Financial and professional rates decline, particularly in excess layers

Financial and professional lines rates decreased 6%, with more significant reductions in excess layers compared to primary layers.

• Capacity in financial and professional lines exceeded demand, with capacity increasing from new entrants and incumbents alike.
• Approximately 80% of directors and officers (D&O) renewals benefited from rate decreases, with many large programs renewed under LTAs that included pre-agreed rate decreases.
• Crime insurance rates declined due to increased competition.
• The professional indemnity market remained fragmented, with overall rate decreases generally less than in D&O, and some small increases noted.
• Opportunities existed for renegotiating policy wording and innovating coverage, particularly in D&O and environmental, social, and governance (ESG) exposures.

Cyber insurance rates decrease on insurer competition

Cyber insurance rates decreased 10%.

• The middle market has become significantly more competitive due to increased capacity.
• Insurers have set high growth targets, and capacity per layer continued to increase.
• Clients trended toward purchasing higher limits as they benefitted from favorable market conditions.
• Restrictions often were eliminated, and insurers broadened coverage with additional industry-specific extensions and innovative solutions.
• New regulations, including the NIS2 Directive and the EU Digital Operational Resilience Act (DORA), are coming into effect, with the EU AI Act legislation progressing towards a 2026 effective date. Underwriters are focusing on vendor management and data collection practices.

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