Europe insurance rates

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.