UK Insurance Market Rates

UK property insurance rates decline; insurer capacity increases

Property rates decreased 6% as competition remained strong in a dynamic insurance market.

• Competition strengthened for high-risk trades where strong risk management practices can be demonstrated.
• Insurers pursued growth ambitions, focusing on new business, organic growth on existing placements, and retaining positions on current accounts.
• Discussions around cyber clauses remain a key topic among insurers.
• Long-term agreements (LTAs) were commonly available, often with built-in reductions in year two or three.
• Early access to markets remained a crucial advantage for clients, enabling them to strengthen their position in negotiations.

Casualty rates increase, driven by motor liability

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

• The motor insurance market experienced an 8% rate increase.
  • Inconsistent approaches to renewals and new business were observed, with sectors like passenger transport and logistics facing regular increases, while private car and van fleets experienced significant competition.
  • Care inflation reached 25% due to provider shortages, impacting individual injury claims.
  • Car theft remained a concern.
  • Insurers emphasized the importance of maintaining accurate Motor Insurance Database (MID) records to avoid unwarranted claims exposure from disposed vehicles.
• In general liability and employer’s liability, insurers focused on growth, creating an increasingly competitive environment, particularly for companies with minimal US exposure.
  • Insurers typically looked to include broader coverage options as a way to differentiate their offerings.
  • LTAs were commonly available.

Financial and professional lines rates decline

Financial and professional lines rates declined 10%.

• Directors and officers (D&O) liability rates declined between 5% and 10%.
• Capacity and competition remained abundant in the financial institutions (FI) market.
• Rate reductions in the crime insurance market slowed, nearing flat levels.

Cyber insurance rates continue to decline

Cyber insurance rates decreased 8%.

• In the first quarter, 78% of cyber clients received rate reductions as insurer competition increased.
• 26% of clients opted to add to their limits.

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