UK Insurance Market Rates

UK property insurance rates decline

Property insurance rates decreased 2%.

• Long-term agreements (LTAs) were offered to many insureds; some included built-in reductions in years two and/or three.
• Issues around cyber clauses in property policies remained a discussion point.
• Rather than declining coverage based solely on SIC codes, more underwriters considered individual risk profiles, which led to increased competition where insurers perceived risk management practices as being of high quality.

Casualty insurance rates flat; auto liability remains a concern

Casualty insurance rates were flat, with general liability and employers liability rates declining.   

• Insurer capacity increased.
• Underwriters maintained focus on US exposures, due in significant part to large jury verdicts.
• Auto liability rates increased, driven in part by the rising costs of vehicle repair.
• Insurers generally prioritized retaining existing clients, while strategically targeting new business.

Financial and professional lines rates decline for eighth straight quarter

Financial and professional lines rates declined 7%, the eighth consecutive quarter of declining or stable rates.

• Directors and officers (D&O) liability rates declined between 5% and 10%, on average.
• Financial institutions (FIs) rates declined 7%.
• Commercial crime rates declined 5% as capacity remained readily available.

Cyber insurance rates continue to decline amid increased insurer competition

Cyber insurance rates decreased 7%.

• Capacity increased, despite increased and evolving threats of zero-day exploits.
• Larger organizations typically received greater rate reductions.
• Insurer competition continued to increase.