Insurance rates in Europe declined 2% in the fourth quarter of 2024. The European insurance industry faced a year of changes and challenges, with the top ten insurance companies remaining consistent while a noticeable reshuffling occurred further down the rankings.
Property insurance rates remained stable, reflecting increased capacity and improved coverage terms following a strong reinsurance renewal season. Insurers prioritized key clients, offering long-term agreements while maintaining scrutiny over high-risk industries such as food and beverage, waste and recycling, and wood and paper.
The Global Insurance Market Index is proprietary measure of commercial insurance rate changes at renewal. Below are insights into the United Kingdom insurance market. Beinsure analyzed the Marsh’s report and highlighted the key points.
Casualty insurance rates in Europe flattened after 21 consecutive quarters of increases. Greater capacity, particularly in the Mediterranean, fueled competition. Major insurers provided competitive terms, with some clients securing three-year agreements. Risks with minimal U.S. exposure saw fewer restrictions, and quota-share placements rose due to oversubscriptions.
Key Highlights
- Property Insurance Stabilizes – Rates remained flat as increased capacity and improved pricing followed a strong reinsurance renewal season.
- Casualty Insurance Growth Slows – After 21 consecutive quarters of increases, rates flattened in Europe due to higher insurer competition and improved capacity.
- D&O Insurance Declines – Financial and professional lines rates dropped 7%, with excess layers seeing larger reductions than primary layers.
- Cyber Insurance Becomes More Competitive – Rates fell 14%, with larger discounts for businesses generating over €250 mn in revenue.
- Insurer Focus on Retention – Across multiple sectors, insurers prioritized existing clients, offering long-term agreements and more favorable terms.
Financial and professional lines experienced a 7% rate decrease, with directors and officers (D&O) insurance seeing the sharpest declines. Most renewals benefited from lower rates, while crime insurance also saw reductions due to increased competition. Insurers focused on client retention, with capacity exceeding demand.
Cyber insurance rates dropped 14%, with larger businesses receiving greater discounts. More capacity drove competition, and premium savings were reinvested into expanded coverage or lower retentions.
Insurers lifted some restrictions, showing increased flexibility. However, concerns remained over systemic cyber risks and regulatory changes shaping future market conditions.
The European insurance industry continues to navigate a dynamic landscape marked by economic uncertainties and evolving market conditions, requiring insurers to adapt and innovate to maintain profitability (see TOP 30 Largest Insurance Companies in Europe 2025).
Factors such as rising interest rates and investment volatility impacted solvency ratios, but mutual groups and those underwriting reinsurance and large corporate risks often had a competitive advantage with high solvency ratios.
Europe composite insurance rate change
Property Insurance in Europe: Stable Rates and Pricing Moderation
Property insurance rates remained unchanged, signaling continued moderation in price increases. A strong reinsurance renewal season led to more capacity, better pricing, and improved coverage terms. Incumbent insurers prioritized key clients, limiting opportunities for new entrants in favorable risk segments.
Long-term agreements (LTAs) and rollovers were available as insurers worked to secure major clients and maintain pricing stability.
EU Property Insurance rates
European insurers remained cautious about distressed businesses, particularly in food and beverage, waste and recycling, and wood and paper sectors. Retention levels and loss limits stayed mostly stable, with clients focused on lowering rates and improving policy conditions.
Casualty Insurance in Europe: Rates Hold Steady After Long Growth Streak
Casualty insurance rates in Europe were flat after 21 consecutive quarters of increases. Insurer competition intensified as capacity availability improved, particularly in the Mediterranean region.
Major insurers pushed for growth by offering favorable terms, though levels of aggressiveness varied. Insurers were generally more flexible on risks with limited U.S. exposure.
An increase in quota-share placements emerged due to oversubscriptions. Some clients secured three-year LTAs.
Financial and Professional Lines in Europe: D&O Rates Decline
Financial and professional lines saw a 7% rate decrease, with excess layers experiencing larger reductions than primary layers. About 80% of directors and officers (D&O) liability coverage renewals benefited from lower rates. Crime insurance rates also fell due to increased competition.
The professional indemnity (PI) market remained fragmented, with rate decreases generally smaller than in D&O. Insurers prioritized retaining existing clients over acquiring new business.
Capacity exceeded demand as both new entrants and incumbents expanded their offerings. Large D&O programs renewed with LTAs featuring pre-agreed rate reductions, adjusted mid-term based on market conditions.
Some clients used savings to increase limits and enhance programs, including crime insurance. Opportunities emerged for renegotiating policy terms and expanding coverage, particularly in D&O and environmental, social, and governance (ESG) risks.
Cyber Insurance in Europe: Rates Drop as Capacity Grows
Cyber insurance rates declined 14%. Many clients secured discounts, with those generating over €250 mn in revenue receiving larger rate reductions than smaller businesses. Competition intensified for clients with revenues up to €500 mn due to increased capacity.
Insurer consortiums expanded primary quota shares, and individual insurers raised primary limits. Premium savings were often reinvested in higher limits or lower retentions.
Some cyber insurance coverage restrictions were lifted as insurers responded to improved risk quality and showed greater flexibility. Underwriters focused on key controls, offering capacity to businesses with strong risk management practices.
The use of telemetry in risk assessment grew, with discounts available for businesses adopting telemetry analysis. Despite the favorable conditions, insurers remained cautious about potential large-scale cyber losses and shifting regulatory challenges.
FAQ
Increased capacity and a favorable reinsurance renewal season stabilized pricing and improved coverage terms.
Improved capacity, particularly in the Mediterranean region, led to greater insurer competition and more flexible pricing.
Increased competition and higher available capacity allowed insurers to offer lower rates, particularly in excess layers.
More available capacity, competition among insurers, and improved risk management by clients contributed to lower rates.
Yes, insurers remain careful with high-risk industries such as food and beverage, waste and recycling, and systemic cyber threats.
Many insurers prioritize retention, offering LTAs with pre-agreed rate reductions and more flexible coverage terms.
Yes, many businesses are securing lower premiums, improved coverage, and better policy terms due to increased competition.
