Nordic Insurance Market Overview: 2024 Trends And Continuations Into 2025

Nordic Insurance Market Overview: 2024 Trends And Continuations Into 2025
May 21, 2025 11 mins

Nordic Insurance Market Overview: 2024 Trends And Continuations Into 2025

Nordic Insurance Market 2024: Softening Conditions & Opportunities

A shift in the Nordic insurance market during 2024 has generally resulted in more buyer- friendly conditions as international insurers’ interest in the Nordics continues to grow, bringing more capacity and creating healthy competition.

Key Takeaways
  1. The Nordic region is experiencing a generally soft but stabilizing market as international insurers introduce new capacity. However, some exceptions to this softening trend in 2024 included property, US liability and cargo risks related to cars and electrical vehicles.
  2. Opportunities for alternative markets and structures, such as fronted collaborative facultative reinsurance, are increasing and should be explored.
  3. Early engagement with brokers and insurers at renewal continues to be best practice, offering opportunities to leverage the soft market for better prices and more favourable limits, terms and conditions.

Market Conditions Overview

Robust risk management and controls, combined with a benign litigious environment and limited natural catastrophe exposures, make Nordic risks an attractive proposition for insurers looking to grow their portfolios. As a result, the market has become more buyer-friendly in 2024, with two exceptions: property insurance, where Nordic insurers have re-underwritten their portfolios due to challenging results, and US liability insurance, where the trend of nuclear jury verdicts (exceeding $10 million) has continued.

For 2025, there is an expectation of rate stabilization for property risks. As insurers seek sustainable profitability, there is also an anticipation of a deceleration in rate reductions for most other lines, including cyber, D&O, non-US liability, and cargo.

The renewal advice for insureds across all lines is to start discussions with their brokers and insurers early, clearly outlining their goals and expectations. There are numerous alternative structures and markets to explore, but detailed data and information are integral to achieving favorable terms and successful placement outcomes.

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With the abundance of capacity still available for many risks, now is a great opportunity to challenge and improve coverage conditions, increase your limits and for some risks, also explore long- term agreements.

Malin Fredriksson
Head of Nordic Broking Centre and CBO Aon Nordics

Property

Current Conditions

The property insurance market has faced challenges over the last five years, but we are now seeing signs of improvement as the cycle concludes. During the past few years, Nordic insurers have focused on re-underwriting their property portfolios to minimize exposure to major losses. This strategy has significantly impacted higher-risk industries such as pulp and paper and food, leading to increased pricing and a growing demand for international insurance capacity. Consequently, shared programs have become more common, even for mid-sized risks.

Underwriters have continued to prioritize high-quality risk information and proactive risk management, with increased follow-up on risk recommendations. Due to rising natural catastrophe claims, climate change, and complexities in supply chains, insurers are also carefully reviewing and adjusting natural catastrophe and contingent business interruption exposures and capacity.

Outlook

Premium rate increases are beginning to stabilize closer to flat, but some mid-single- digit rate adjustments may still be expected in the first half of 2025. However, the re-underwriting   efforts by Nordic insurers have led to higher premium rates, making Nordic risks more attractive to international markets. As a result, more capacity is expected to continue to enter the market, increasing competition and likely softening the market towards the latter part of 2025. The extent of this impact will vary depending on the type of occupancy and risk quality. Conversely, higher-risk occupancies or less well-performing risks may continue to see rate increases, especially if they remain subject to the re-underwriting   strategies of Nordic insurers. 

The use of reinsurance solutions and facilities is on the rise, providing more options for placement strategies to achieve optimal outcomes by utilizing capacity where it is most competitive.

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I would recommend monitoring the market closely for the ongoing re-underwriting efforts of Nordic insurers and the impact it may have on capacity and pricing, especially for the higher risk occupancies. Be prepared to challenge the current program set up and how to leverage the growing interest from international markets to create optimal outcomes.

Jenni Valkeapää
Head of Property, Aon Nordics

Liability

Current Conditions

Overall, the liability market is stable but shows a clear division between risks exposed to the US tort system and those in the rest of the world. Placements with significant US exposures are experiencing premium increases, while liability risks outside the US are being treated more favorably by insurers, with some rate softening. However, carriers remain prudent in their risk selection. Insurers are increasingly restricting or excluding coverage for "forever chemicals" such as per- and polyfluoroalkyl (PFAS) substances. Placements with large US exposures are expected to see modest price increases in 2025. Additionally, shared and structured placement solutions are becoming more common in liability programs.

Outlook

Nuclear verdicts, litigation funding, and aggressive plaintiff bar tactics continue to drive adverse loss trends for risks with US liability exposure. With no remedy to social inflation in sight, difficult market conditions for US exposures are almost certain to persist throughout 2025. Product liability class actions are on the rise, particularly focusing on consumer products such as pharmaceuticals, chemicals, food and beverages, and household electronics. These factors contribute to larger and less predictable jury awards and settlement values.

In recent years, there has been a reduction in primary limits. To mitigate this, the Nordic liability market is increasingly utilizing alternative risk transfer solutions, such as collaborative facultative reinsurance. This approach makes Nordic risks more accessible to international insurers, leading to more competitive markets and better terms and conditions for the insured.

For a successful renewal, providing detailed risk information is essential. When discussing restrictions or exclusions for PFAS, some carriers are more pragmatic than others. However, comprehensive PFAS exposure information is required.

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The Nordic casualty market remains competitive for well-performing risks without US exposure. However, insurers are being cautious regarding Nordic multi-nationals with significant US risks such as US operations or export of goods. For companies with this risk profile, we expect to see premium increases and, to some extent, restricted coverages.

Lill Skogli
Head of Casualty, Aon Nordics

Directors & Officers (D&O)

Current Conditions

The Directors and Officers (D&O) insurance market remains soft, with premiums reduced for the past 11 quarters despite an increase in claims frequency. However, there have been no significant adverse losses impacting the market. Insurers are concentrating on both retaining existing clients and expanding their portfolios. The global lack of IPOs and limited investment made 2024 largely uneventful for insurers in terms of new sales.

There is an abundance of capacity available, and with the global economy showing signs of stabilization, competition for new clients and programs continues to put pressure on premiums. Decreases at renewals are still common, especially in the excess structure of larger programs. However, the D&O market remains two-tiered, with challenging risks requiring detailed underwriting information. The risk landscape for directors and officers is becoming increasingly complex, as scrutiny from regulators and activists heightens the focus on D&O policies as a means to recover financial losses.

Outlook

The market is expected to remain soft but stabilizing this year, with ample capacity, particularly in the excess segment. The risk landscape is becoming increasingly complex. While insolvency and ESG have been significant concerns recently, emerging issues such as geopolitical risk, new legislative changes, and the use of AI are becoming major priorities. Boards should ensure these risks are managed appropriately.

Soft market conditions present an opportunity to increase program limits without significant cost increases. During renewal, it is crucial to ensure that current wordings are broad and comprehensive, with limited exclusions. Additionally, considering alternative structures and risk transfer solutions is becoming more relevant.

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Ensure robust and adequate Side A cover for individual liability. Consider establishing a pure Side A DIC/DIL excess cover or even ringfencing a dedicated cover for the main board.

Solveig Dalseg
Head of Financial Lines, Aon Nordics

Cyber

Current Conditions

Cyber insurance is currently in a soft market, with average premium decreases of around 10 percent. There is abundant capacity, and insurance terms are improving beyond traditional coverages due to healthy insurer competition. However, premium decreases depend on risk quality, claims history, and industry operations. Insurers maintain a rigorous focus on the quality of the risk, emphasizing the importance of a well-structured insurance submission. Higher premium decreases are possible for businesses that did not benefit from the previous year’s soft market, especially on larger insurance programs. New insurers are entering the market, while incumbent insurers are highly motivated to retain business with high excess layers on large programs.

In terms of claims, the market has seen an increase in notifications but fewer severe claims. Ransomware remains one of the biggest concerns, with a significant focus on supply chain management as a major risk.

Outlook

Continued market stability is expected throughout 2025, but geopolitical tensions and other conditions could introduce more volatility beyond this year. Insurers are exploring innovative approaches to remain competitive and relevant, including offering more cyber risk services within their policies, targeting smaller revenue segments, and developing bulk quoting tools. While security controls remain important, the amount of information required at renewal has significantly decreased.

For a successful renewal, it’s important to start early, take advantage of the healthy competition to negotiate better terms, and stay informed about innovative approaches and additional policy features that support risk improvement.

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We continue to encourage clients to reinvest savings from renewals in further coverage enhancements, or additional limits. This will put more value into their cyber insurance without necessarily adding cost.

Amine Menaa
Head of Cyber Solutions, Aon Nordics

Cargo

Current Conditions

The cargo market is softening after years of turmoil and a hard market driven by factors such as natural catastrophes, the pandemic, inflation, and geopolitical turmoil. The world has undergone a massive supply chain stress test, including closed borders, closed harbors, re-routing of trade lanes, significant port congestion, delays, and shortages of containers, components, and commodities.

In recent years, positive developments in the cargo insurance market, both globally and in the Nordics, have led insurers to seek portfolio growth. This has resulted in increased capacity and stable pricing, with the possibility of decreased rates for some risks. However, this trend does not apply to all industries, as the transportation of cars and electric vehicles continues to experience a hard market.

Outlook

Looking ahead, easy access to capacity is likely to continue, maintaining the softening market. However, some challenging exposures, such as the transportation of cars and electric vehicles, may still face difficulties, although more promising conditions could emerge. For larger risks and exposures, there is a shift towards risk sharing through alternative structures or risk transfer solutions.

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Providing insurers with good data is still key for renewal, while continuous review of policy limits, not just at renewal, will help prevent underinsurance. Insureds should, however, be leveraging the soft market to achieve the best possible terms and prices.

Patrik Almström
Head of Cargo & Logistics, Aon Nordics

Four Tips for a Successful Renewal

  1. Ensure you start dialogues with your broker and key insurers early, allowing ample time to identify options and negotiate.
  2. Develop a robust broking strategy by understanding your risk appetite and tolerance, and clearly communicating your goals and expectations.
  3. Provide detailed information about risk exposures and risk management practices. High-quality information and risk profiles attract more capacity and lead to more successful placement outcomes.
  4. Challenge the status quo by exploring alternative structures and markets.
Aon’s Thought Leaders
  • Malin Fredriksson
    Head of Nordic Broking Centre and CBO Aon Nordics
  • Jenni Valkeapää
    Head of Property, Aon Nordics
  • Lill Skogli
    Head of Casualty, Aon Nordics
  • Solveig Dalseg
    Head of Financial Lines, Aon Nordics
  • Amine Menaa
    Head of Cyber Solutions, Aon Nordics
  • Patrik Almström
    Head of Cargo & Logistics, Aon Nordics

General Disclaimer

The information contained herein and the statements expressed are of a general nature and are not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information and use sources we consider reliable, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. FP.AGRC.2025.340.GG

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