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Digital report

UK Insurance Market Pricing

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

Q4 2023 

UK pricing: Cyber rate increases continue to moderate

Insurance rates in the UK were flat in the fourth quarter of 2023.

UK fourth quarter 2023

UK composite insurance rate change 

UK property

UK property insurance market competition increases

Property insurance rates increased 1%.

  • Large organizations generally experienced rates at flat to 5% increases; midsize clients typically received rate decreases ranging from 5% to flat.
  • Some clients benefitted from increased insurer competition.
  • Insurers increasingly offered long-term agreements (LTAs). 
  • Insurers remained cautious on catastrophe (CAT) risks and organizations with heavy occupancy or distressed business.

UK casualty

Casualty insurance rates increase, led by auto liability 

Casualty insurance rates increased 2%. 

  • Employer’s liability rates in the fourth quarter experienced a slight shift toward reductions.
  • Continued insurer competition helped to drive general liability rate decreases.
  • Capacity contracted in the UK motor reinsurance market; rate increases typically ranged from 7% to 20%. 
    • Updated policy wordings reflected the changing nature of electric and other vehicle technologies, with insurers increasingly imposing cyber exclusions but offering coverage for the potential tripping hazard liability posed by electric vehicle charging cables.

UK financial and professional lines

D&O rates continue to decrease

Financial and professional lines rates declined 6%. 

  • Directors and officers (D&O) rates continued to decrease, typically in the 10% to 15% range; the pace of decreases began to slow. 
  • Financial institutions rates decreased in the high single digits, driven by greater insurer competition.
  • The commercial crime market saw new entrants and increased competition; much of the increased capacity was for excess layers. 

Cyber market competition continues to increase

Cyber insurance rates increased 2%.

  • The current decrease in cyber rates can be attributed in part to conditions during the challenging market period, characterized by frequent and severe losses and concerns regarding cybersecurity controls.
  • Since the second half of 2022, competition has increased, driving improved rates and coverage.

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.