Q1 2024
European composite rates increase at slower pace
Insurance rates in Europe increased 3% in the first quarter of 2024.
Europe first quarter 2024
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Europe composite insurance rate change
Europe property
Property rates continue to rise
Property insurance rates rose 5% compared to a 7% increase in the prior quarter.
- Underwriters scrutinized natural catastrophe exposed organizations, although capacity was generally available.
- Companies with natural catastrophe exposure generally saw above average price increases, capacity reductions, increased deductibles, and scrutiny of limits.
- Capacity and price challenges also continued for heavy occupancy or distressed businesses, such as those with losses and/or those perceived by insurers as having substandard risk management.
- Long term agreements (LTAs) were offered in many cases.
- Ongoing political and societal tensions drove some insurers to seek sub-limit adjustments and coverage restrictions in strikes, riots and civil commotion (SRCC) coverage.
Europe casualty
Casualty rates increase as capacity reductions ease
Casualty insurance rates increased 5%.
- Rates were generally stable across Europe, with the exception of the Nordic countries, where substantial increases were seen on complex and US-exposed risks.
- Concerns over exclusionary language related to biometric data and data privacy, with emerging concern relating to per- and polyfluoroalkyl (PFAS) substances.
- Capacity reductions by major insurers eased.
Europe financial and professional lines
Financial and professional rates decline on increased insurer competition
Financial and professional lines rates declined 7%.
- For directors and officers (D&O) liability insurance, capacity and insurer competition increased.
- Many large D&O programs renewed with LTAs, some with a slight premium decrease factored in for the second year.
- Some clients reinvested premium savings to increase limits on other programs, such as crime.
Cyber insurance rates decrease for second consecutive quarter
Cyber insurance rates decreased 7%.
- Insureds with higher revenues (>€250 million) and effective cybersecurity controls typically experienced greater rate decreases.
- The downward movement in rates was observed primarily in excess layers, although some larger companies also found savings at the primary and first excess program layers.
- Many clients adjusted program structures, for example, increasing limits or reducing retentions.
- The awareness of cyber risks has also led to an increase in new clients entering the market.
- Underwriters paid particular attention to digital supply chain management.