UK Insurance Market Rates

UK property insurance rates decline; insurer capacity increases

Property rates decreased 6% as insurer competition remained strong.

• Insurer appetite was broad and competition strong, not limited to specific industry sectors; insurers generally agreed to broader wordings and product offerings.
• Property claims activity in the UK was low in the first two quarters of 2025.
• Clients considered insurers writing their other lines of business and alternatives to the incumbent insurer.
• Rate reductions were available for some clients that canceled and rewrote existing deals or entered new long-term agreements (LTAs).
• Getting submissions to insurers early in the renewal cycle remained a key advantage for some clients, enabling them to achieve significant savings.

Casualty rates decrease

Casualty insurance rates decreased 1%; excluding motor liability, casualty rates decreased 5%.

• Rates in the motor insurance market continued to increase.
  • Risks seen by insurers as performing well experienced increases in the 5% to 10% range; those with poorer claims experiences typically saw rates with double-digit increases.
  • Insurers’ approaches to renewals and new business varied by segment. For example, private car and van fleets generally saw lesser rate increases than passenger transport and logistics.
  • Growing vehicle complexity and alternative fuel types, particularly electric vehicles (EVs), are challenging insurers in risk assessment and claims management. For example, damage to EV batteries can lead to significant write-offs, with replacement costs ranging from £8,000 to £12,000.
  • Average repair costs have increased by 13% to 15% since 2022, with vehicle parts 8% to 10% higher and labor costs rising by 20% due to shortages of skilled workers.
  • Theft rates have increased by more than 50% over the past five years.
• General liability (GL) and employer’s liability remained competitive with significant capacity available.
  • GL rates remained stable, while employer’s liability rates continued to decline.
  • While some insureds, particularly those with unfavorable loss histories or significant US exposures, saw limited single-digit rate increases, the overall rate trend was downward.
  • Insurers showed limited appetite for US exposure among insurers.
  • Insurers' expect a continuation of these trends through 2025, barring unforeseen changes in conditions.

Financial and professional lines rates decline

Financial and professional lines rates declined 8%.

• Directors and officers (D&O) liability rates declined by 8%.
  • Insurers continued to review pricing for US exposures.
  • Risks with little or no US exposure and seen as well-performing by insurers typically were able to achieve premium savings.
• Financial institutions rates declined 9% amid insurer competition.
• Crime insurance rate reductions accelerated, declining by 7% after being near flat in the prior quarter.

Cyber insurance rates continue to decline

Cyber insurance rates decreased 11%.

• Many clients offset rate reductions by purchasing higher limits.
• Amid favorable insurer rating conditions and broader coverage options, there was an increase in the number of cyber insurance buyers.
• Retentions and waiting periods continued to decrease.
• Insurers generally are offering risk management services as a way to differentiate their offerings.

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