Europe insurance rates

Financial and professional lines capacity increases

Financial and professional lines rates declined 3%.

• Most directors and officers (D&O) liability clients experienced rate reductions.
• Long-term agreements (LTAs) were available in many cases, some with reductions built in for the second year.
• Capacity increased as new insurers entered the market and incumbents deployed more capital.
• Some clients were able to negotiate wording and other innovations, particularly related to D&O and environmental, social, and governance (ESG) exposures.

Cyber insurance rates continue to decrease

Cyber insurance rates decreased 7%.

• Pricing depended largely on industry, perceived risk quality, and company size.
  • Insureds with revenues above EUR250 million and effective cybersecurity controls typically experienced greater rate decreases.
  • The downward movement in rates was observed mainly in excess layers; larger accounts also generally experienced savings at the primary and first excess layers.
• Coverage restrictions were eliminated on accounts due to perceived improvements in underlying risk quality and increased flexibility on the insurer's side.
• Underwriters paid particular attention to digital supply chain management.