LOW
Rates flat to down with capacity available. Continued insurer appetite with some flexibility on coverage and deductibles
The shift towards a firming market continues
Click a country on the heat map to see the impact of shifting insurance market conditions and what this means for buyers
Note: Findings included in the insurance market heat map for 14 specified European countries and eight lines of business come from Aon’s analysis of trends and opinions based on our proprietary data and analytics, engagement with clients and/or key insurance markets. As at time of publish date – November 2019
Ireland
The financial lines market has firmed considerably. Property capacity on higher hazard industries is challenging and some leisure businesses are closing as unable to find economic insurance cover due to withdrawal of London capacity.
- A firming PI market with shrinking capacity in all professions. Situation continues to deteriorate
- Challenges in high hazard property risks and financial lines for listed companies with US exposures
- Ongoing negative development in liability lines as historical losses continue to deteriorate
CYBER
MARINE CARGO
DIRECTORS’ & OFFICERS’
MOTOR FLEET
GENERAL LIABILITY
PROFESSIONAL INDEMNITY
MARINE LIABILITY
PROPERTY & BUSINESS INTERRUPTION
United Kingdom
Market is entering a far more disciplined phase with insurers expecting sufficient risk information and allowing enough time for renewals. Markets are becoming increasingly slow in providing renewal terms, with little time for clients to look at options.
- Specific areas of concern include D&O, crime and professional indemnity
- Professional indemnity remains one of our biggest challenges leading to rate rises in construction, design and other related professions. In addition, significant reduction in capacity
- Food and waste are challenging sectors for PBI with insurer focus on risk management quality
CYBER
MARINE CARGO
DIRECTORS’ & OFFICERS’
MOTOR FLEET
GENERAL LIABILITY
PROFESSIONAL INDEMNITY
MARINE LIABILITY
PROPERTY & BUSINESS INTERRUPTION
Germany
Clients with poor loss records and/or limited risk management investment are seeing premium increases and facing capacity constraints. The market is firming.
- Rate increases in marine cargo due to a shrinking capacity
- A rising number of cyber claims has led to insurers increasing premiums
- Rate increases in PBI, especially for international risks (chemicals, pulp & paper and wood)
CYBER
MARINE CARGO
DIRECTORS’ & OFFICERS’
MOTOR FLEET
GENERAL LIABILITY
PROFESSIONAL INDEMNITY
MARINE LIABILITY
PROPERTY & BUSINESS INTERRUPTION
Norway
Market remains competitive as domestic insurers are strong. However, some international insurers are pushing for rate increases and de-risking their portfolio. There is an expectation that rates will firm across most lines.
- Market changes have accelerated with domestic insurers looking for rate increases on all major product lines, including property and motor
- D&O insurers continue to focus on risk selection with reduced capacity/increased premiums for challenging risks
- Cyber insurers have a better understanding of risk and look at risk selection
CYBER
MARINE CARGO
DIRECTORS’ & OFFICERS’
MOTOR FLEET
GENERAL LIABILITY
PROFESSIONAL INDEMNITY
MARINE LIABILITY
PROPERTY & BUSINESS INTERRUPTION
Sweden
D&O insurance has seen restrictions on both primary and excess layers due to an increase in Securities Class Action Lawsuit filings. Regulatory proceedings are on the rise with insurers withdrawing capacity from the market. The commercial crime market continues to be restrictive with higher deductibles and premium rate increases.
- The market is firming with rate increases on marine cargo and risks are being analysed more carefully
- The EPL market is firming with a reduction in capacity and adjustments on both deductibles and premiums with regulatory changes contributing to more restrictive underwriting
- Placement challenges for product recall (automotive) and PI (financial institutions)
CYBER
MARINE CARGO
DIRECTORS’ & OFFICERS’
MOTOR FLEET
GENERAL LIABILITY
PROFESSIONAL INDEMNITY
MARINE LIABILITY
PROPERTY & BUSINESS INTERRUPTION
Denmark
As with other Nordic countries, the market is stable across most lines, with rates flat or even down for general liability, marine liability, marine cargo and motor fleet.
- Cyber is tightening as underwriters better understand the risk
- Capacity challenges remain for life sciences general liability
- Some D&O insurers have increased rates and reduced their capacity
CYBER
MARINE CARGO
DIRECTORS’ & OFFICERS’
MOTOR FLEET
GENERAL LIABILITY
PROFESSIONAL INDEMNITY
MARINE LIABILITY
PROPERTY & BUSINESS INTERRUPTION
Finland
Where domestic insurers have a strong presence, there is little market change. Conversely, where international insurers are stronger, there are more signs of a changing market.
- Domestic market remains competitive
- Underwriters are scrutinising property risks in certain sectors such as food, meat production and recycling
- Accumulation concerns affecting cyber placements for financial institutions and tech companies
CYBER
MARINE CARGO
DIRECTORS’ & OFFICERS’
MOTOR FLEET
GENERAL LIABILITY
PROFESSIONAL INDEMNITY
MARINE LIABILITY
PROPERTY & BUSINESS INTERRUPTION
Netherlands
Recent sudden firming on cyber. Premiums up and capacity down on especially large placements due to recent increase in claims activity. Construction PI is a difficult market due to a reduction of capacity and there’s a strong push for rate increases on commercial D&O, particularly for US listed companies. General liability is challenging, particularly for US exposed risks.
- The property portfolio will see rates increase and more sectors have become distressed (food, cold storage, waste & recycling, woodworking) leading to capacity constraints
- Underwriters are looking for moderate increases and/or restrictions of cover for clients with adverse loss records in marine cargo
- Less capacity in motor fleet due to mergers and changes in risk appetite
CYBER
MARINE CARGO
DIRECTORS’ & OFFICERS’
MOTOR FLEET
GENERAL LIABILITY
PROFESSIONAL INDEMNITY
MARINE LIABILITY
PROPERTY & BUSINESS INTERRUPTION
Belgium
Property & business interruption is seeing increased premium levels and capacity reductions on international accounts and waste/ renewable energy and workers’ compensation are seeing significant overall rate increases.
- General liability is challenging for large, international clients, particularly for the automotive sector, or buyers with US exposures
- Motor fleet rates have increased with more restrictive terms and conditions
- Limited insurer appetite for construction professional indemnity given prior loss history
CYBER
MARINE CARGO
DIRECTORS’ & OFFICERS’
MOTOR FLEET
GENERAL LIABILITY
PROFESSIONAL INDEMNITY
MARINE LIABILITY
PROPERTY & BUSINESS INTERRUPTION
France
Market is firming with changes in most lines. Renewals are taking longer with limited markets to lead the largest programmes. Long-term agreements and rollovers are difficult to obtain.
- Agriculture, pharma and automotive sectors are showing signs of firming for general liability
- D&O market is firming for organisations with US exposures
- Broad trends include programme layering and challenges for long-term agreements
CYBER
MARINE CARGO
DIRECTORS’ & OFFICERS’
MOTOR FLEET
GENERAL LIABILITY
PROFESSIONAL INDEMNITY
MARINE LIABILITY
PROPERTY & BUSINESS INTERRUPTION
Switzerland
There is capacity in the market and a continuing appetite for risks with a good loss record, and where enterprise risk is well managed.
- Liability is seeing stable premiums and flexibility
- There is an increase in cyber claims, but the market for buyers remains solid
CYBER
MARINE CARGO
DIRECTORS’ & OFFICERS’
MOTOR FLEET
GENERAL LIABILITY
PROFESSIONAL INDEMNITY
MARINE LIABILITY
PROPERTY & BUSINESS INTERRUPTION
Italy
Market is giving signals of firming in property and D&O but most other lines remain stable.
- Property and D&O have been particularly affected by rate increases
- Lack of property & business interruption capacity available for waste treatment
- Financial institutions and the public sector are becoming more disciplined
CYBER
MARINE CARGO
DIRECTORS’ & OFFICERS’
MOTOR FLEET
GENERAL LIABILITY
PROFESSIONAL INDEMNITY
MARINE LIABILITY
PROPERTY & BUSINESS INTERRUPTION
Spain
Increased interest in speciality products including cyber, surety, M&A and health. The D&O market is firming significantly across prices, conditions and capacity and extensions for construction projects are being challenged.
- Insurers focusing on corporate and middle market more than global risks
- Limited capacity in waste management and food
- Large construction projects are seeing challenges in capacity and conditions
- Limited thermosolar capacity in the market with firming conditions
CYBER
MARINE CARGO
DIRECTORS’ & OFFICERS’
MOTOR FLEET
GENERAL LIABILITY
PROFESSIONAL INDEMNITY
MARINE LIABILITY
PROPERTY & BUSINESS INTERRUPTION
Portugal
Natural catastrophe exposure - such as earthquake and wildfire - has caused some challenges due to limited ongoing insurer appetite.
- Limited local capacity for professional indemnity along with rate rises
- Awareness of cyber risk is still low with many viewing this as an IT issue
- Motor is under pressure particularly in sectors such as car rental
CYBER
MARINE CARGO
DIRECTORS’ & OFFICERS’
MOTOR FLEET
GENERAL LIABILITY
PROFESSIONAL INDEMNITY
MARINE LIABILITY
PROPERTY & BUSINESS INTERRUPTION
MODERATE
Rates are firming (5-10%) with capacity generally available. A level of underwriting scrutiny on coverage with a focus on deductible adequacy
HIGH
Rates increasing at +10% with capacity potentially contracting. Increased likelihood of underwriting referrals and detailed review of cover, limits and deductibles
Note: The heat map rating definitions are representative of Aon’s Insurance Market Update and our analysis of trends and opinions based on our proprietary data and analytics and engagement with key insurance markets. As at time of publish date – June 2019