Europe Insurance Market Rates

Property rates decline

Property insurance rates declined 4% as insurer competition remained high.

• France, Spain, and the Netherlands led in rate reductions, while Germany, Italy, and the Nordic countries typically experienced flat rates to slight decreases.
• Incumbent insurers tended to focus on retention and growth, while new insurers pursued expansion.
• Long-term agreements (LTAs) remained common in Europe.
• Insureds generally were able to secure additional limits and reduce non-concurrencies, typically favoring flexible underwriters.
• Uncertainty regarding tariffs resulted in clients seeking greater clarity on supplier vulnerabilities, resulting in insurer focus on contingent business interruption (CBI) exposure and supply chain risks.

Casualty rates increase

Casualty insurance rates increased 1%, driven in large part by US exposures.

• General liability rates increased slightly, although reductions were seen for more complex risks in certain countries.
  • Insurer risk appetite increased, with a willingness to support more complex risks.
  • Some insurers increased limits.
  • Competition increased for non-US exposed risks.
  • Coverage remained stable, with some focus on sanctions wordings.
• Auto liability insurance rates continued to rise by double digits in most countries, with exceptions in the Nordics, where rates were stable.
  • Inflation continued to drive up the cost of spare parts, leading to increased claims costs.
  • Higher accident frequency and severe natural events, such as hail and flooding, challenged insurers' technical results, resulted in rate increases in some instances.

Financial and professional rates decline, particularly in excess layers

Financial and professional lines rates decreased 6% amid ample insurer capacity.

• Many directors and officers (D&O) liability insurance clients experienced rate decreases, with many large programs renewed under long-term agreements (LTAs) that included pre-agreed rate reductions.
• Crime insurance rates declined due to increased competition.
• The capacity in financial and professional lines exceeded demand, with both new entrants and incumbents increasing their capacity.
• The professional indemnity (PI) market saw rate decreases generally lower than those in D&O, although some small increases were observed.
• There were opportunities to renegotiate policy wording and innovate coverage, particularly in D&O and environmental, social, and governance (ESG) exposures.

Cyber insurance rates decrease on insurer competition

Cyber insurance rates decreased 15%, the fourth consecutive quarter of double-digit decreases.

• New insurers entered the market, and increased capacity for small and medium-sized enterprises.
• Many clients purchased higher limits and adjusted their programs and retentions.
• Insurers typically eliminated restrictions and broadened coverage for accounts with additional industry-specific extensions and solutions.
• New regulations, such as the NIS 2 Directive, the EU Digital Operational Resilience Act (DORA), and the EU AI Act are being implemented.

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