Continental Europe Q4 2021

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Continental Europe Pricing: Property and D&O Lines Continue to Stabilize

Insurance pricing in the fourth quarter of 2021 in Continental Europe (CE) increased 9%, compared to 10% in the third quarter.

Constant bar chart represents Global Insurance Composite Pricing Change.

Property insurance pricing in CE rose 10%, down from 12% in the third quarter.

CAT-exposed risks experienced the largest increases, at a slightly reduced level compared to prior quarters.
Competition for new business increased among European domestic carriers.
Insurers continued strict underwriting controls, particularly for large, complex multinational clients. Those with a better loss history or that demonstrated good risk mitigation controls attracted more favorable terms and rates.
Significant losses in 2021, including fires in Greece and Turkey and European floods, continued to destabilize the market, particularly in affected areas.
Insurers continued to seek to apply exclusions, particularly for communicable disease and cyber.

Casualty insurance pricing increased 7%, up from 5% in the prior quarter.

Loss impacted renewals were the most challenging, with insurers looking to restrict capacity.
Excess casualty and US-exposed placements remained challenging, with clients in most countries experiencing general liability pricing increases in the single digits, though some were as high as 20%.
Underwriters scrutinized non-core extensions and increased focus on exclusions, particularly for communicable disease, cyber, financial loss, and professional indemnity exposures.
Auto liability pricing remained generally stable. Clients with large US fleets experienced significant price increases.
Some clients experienced increases in workers’ compensation, generally due to limited capacity.

Financial and professional lines pricing increased 13%, down from 14% in the third quarter.

The D&O market continued to be stable, due to increases in insurer competition, appetite, and capacity.
- Despite outliers with US exposures, certain industry sectors — including life sciences and technology — experienced rate reductions on select programs.
Pricing increases for FI and professional liability generally ranged from 5% to 20%, depending on risk profile.
Cyber insurance rates increased by 65%, driven by capacity reductions and ransomware claims.
- Underwriters required more information at renewal.
- Self-retentions increased, as did the use of captives.

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