A Closer Look at the UK Market
In Q2 2025, the UK insurance market continued to soften across most lines, with average rate reductions ranging from 11% to 20%, according to Aon data. The softening trend has not only persisted but accelerated in some areas, particularly for preferred risks with strong loss records. Motor remains an outlier, with rates still increasing marginally due to claims inflation and higher loss frequency.
Competition and abundant capacity are driving broader coverage, higher limits and more flexible underwriting. Deductibles remain flat, and insurers are differentiating through enhanced terms and responsiveness.
While favourable conditions stand, they are increasingly seen as fragile. Buyers are encouraged to act now to secure savings and strengthen programme resilience against future volatility.
How to Maximise Savings and Build Resilience
To take advantage of the current soft market, businesses must think beyond the renewal transaction. Early engagement with the market, data-driven decision making and high-quality risk submissions are key to maximising savings and strengthening long-term resilience.
Why it Matters
- Strategic savings unlocked now can be reinvested for the next market cycle.
- Market differentials reward true risk differentiation, not just price negotiation.
- Long-term risk improvement is far easier — and less expensive — when insurers are willing partners, not gatekeepers.
Today’s soft market is about more than immediate savings — it’s an opportunity to future-proof your insurance programme. By reinvesting premium reductions, enhancing risk controls and forging lasting insurer partnerships, companies can build a more resilient foundation for future volatility.
“Success starts with high-quality presentations,” says James Tiffen, Executive Director of Retail in the United Kingdom. “That means engaging early with the market, cleansing claims data to reflect the current organisation and using data and analytics to optimise insured structures from a total cost of risk perspective.”
