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Europe Insurance Market Pricing

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

Q4 2023 

Europe pricing: Cyber rates decrease, coverage improves 

Insurance rates in Europe increased 4% in the fourth quarter of 2023.  

Europe fourth quarter 2023

Europe composite insurance rate change 

Europe property

Europe property rates influenced by recent CAT events

Property insurance rates rose 7%. 

  • Property rates were influenced largely by CAT events, including earthquakes in Turkey, floods in Greece and Germany, and hailstorms in Italy.
  • Capacity was abundant for clients viewed as good risks by insurers, and long-term agreements (LTAs) were more available.
  • Underwriting scrutiny continued regarding catastrophe (CAT) aggregates and deductibles, limitations on cover for non-physical damage, cyber, terrorism, and strikes, riot, civil commotion (SRCC).

Europe casualty

Casualty rates increase; capacity remains available

Casualty insurance rates increased 6%.  

  • Capacity was readily available, driving competition in the mid-market.
  • Insurers continued to scrutinize polyfluoroalkyl substances (PFAs) exposure, loss-impacted, and heavily exposed risks. 

Europe financial and professional lines

Financial and professional rates decline

Financial and professional lines rates declined 7%.   

  • Capacity and insurer competition increased.
  • Nearly 10% of clients reinvested premium savings to increase limits.

Cyber insurance rates decrease, particularly in excess layers

Cyber insurance rates decreased 5%.

  • Nearly 80% of insureds renewed without any rate increase and with either stable or decreased retentions as insurer competition increased.
  • The downward movement in rates was mostly observed in excess layers; some larger clients also saw decreases at the primary layers. 
  • As rates stabilized, many clients purchased higher limits. 
  • Insurers eliminated many coverage restrictions due to perceived improvements in underlying risk quality.

This document and any recommendations, analysis, or advice provided by Marsh (collectively, the ‘Marsh Analysis’) are not intended to be taken as advice regarding any individual situation and should not be relied upon as such. This document contains proprietary, confidential information of Marsh and may not be shared with any third party, including other insurance producers, without Marsh’s prior written consent. Any statements concerning actuarial, tax, accounting, or legal matters are based solely on our experience as insurance brokers and risk consultants and are not to be relied upon as actuarial, accounting, tax, or legal advice, for which you should consult your own professional advisors. Any modelling, analytics, or projections are subject to inherent uncertainty, and the Marsh Analysis could be materially affected if any underlying assumptions, conditions, information, or factors are inaccurate or incomplete or should change. The information contained herein is based on sources we believe reliable, but we make no representation or warranty as to its accuracy. Except as may be set forth in an agreement between you and Marsh, Marsh shall have no obligation to update the Marsh Analysis and shall have no liability to you or any other party with regard to the Marsh Analysis or to any services provided by a third party to you or Marsh. Marsh makes no representation or warranty concerning the application of policy wordings or the financial condition or solvency of insurers or re-insurers. Marsh makes no assurances regarding the availability, cost, or terms of insurance coverage. LCPA 24/031.