A shift towards a
firming market

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 – June 2019

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Ireland

Generally the financial lines market has firmed considerably, particularly for US listed companies. Property capacity on higher hazard industries is challenging and the general liability market is firming with increased usage of self-insured retentions.

  • 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

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United Kingdom

Market is entering a more disciplined phase. Key areas of focus include providing sufficient risk information and allowing enough time for renewals.

  • Specific areas of concern include D&O, marine cargo and professional indemnity
  • PI challenges triggered by the Grenfell Tower block fire leading to rate rises in construction, design and other related professions
  • Food and waste are challenging sectors for property & business interruption with insurer focus on risk management quality

CYBER

MARINE CARGO

DIRECTORS’ & OFFICERS’

MOTOR FLEET

GENERAL LIABILITY

PROFESSIONAL INDEMNITY

MARINE LIABILITY

PROPERTY & BUSINESS INTERRUPTION

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Germany

Clients with poor loss records and/or limited risk management investment are seeing premium increases and facing capacity constraints. The market is firming.

  • 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)
  • Higher rates are being enforced for D&O, although capacity is currently adequate

CYBER

MARINE CARGO

DIRECTORS’ & OFFICERS’

MOTOR FLEET

GENERAL LIABILITY

PROFESSIONAL INDEMNITY

MARINE LIABILITY

PROPERTY & BUSINESS INTERRUPTION

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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.

  • Certain property risks are challenging to place, especially for waste treatment and food production sectors
  • D&O is slightly firming
  • Cyber is a developing market and rates are relatively competitive

CYBER

MARINE CARGO

DIRECTORS’ & OFFICERS’

MOTOR FLEET

GENERAL LIABILITY

PROFESSIONAL INDEMNITY

MARINE LIABILITY

PROPERTY & BUSINESS INTERRUPTION

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Sweden

For multi-national buyers accessing the global market, there are signs of firming. The picture is generally different for large and
mid-sized national organisations where the domestic market is still quite competitive.

  • Motor is showing significant rate increases for some buyers
  • Capacity challenges for property in steel, mining, waste and food sectors
  • Placement challenges for product recall (automotive) and professional indemnity (financial institutions)

CYBER

MARINE CARGO

DIRECTORS’ & OFFICERS’

MOTOR FLEET

GENERAL LIABILITY

PROFESSIONAL INDEMNITY

MARINE LIABILITY

PROPERTY & BUSINESS INTERRUPTION

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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

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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

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Netherlands

Insurers are focused on profitability and re-underwriting their portfolios with a stronger focus on the quality of risk management to deliver bottom line results.

  • Property sectors have become distressed (cold storage, food, and areas of real estate with attritional losses)
  • There is reluctance to write primary liability on international risks
  • Markets have pushed strongly for rate increases in commercial D&O

CYBER

MARINE CARGO

DIRECTORS’ & OFFICERS’

MOTOR FLEET

GENERAL LIABILITY

PROFESSIONAL INDEMNITY

MARINE LIABILITY

PROPERTY & BUSINESS INTERRUPTION

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Belgium

Market is experiencing an overall firming with some lines and sectors impacted more strongly than others.

  • 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

Back to map

France

Market is flat to firming, with changes in some lines. Renewals are taking longer with limited markets to lead the largest global programmes.

  • 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 arrangements

CYBER

MARINE CARGO

DIRECTORS’ & OFFICERS’

MOTOR FLEET

GENERAL LIABILITY

PROFESSIONAL INDEMNITY

MARINE LIABILITY

PROPERTY & BUSINESS INTERRUPTION

Back to map

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.

  • A stable to slightly firming market trend following 15 years of softening property rates
  • Few cyber claims translate to a good market for buyers
  • Liability is seeing premium decreases and flexibility

CYBER

MARINE CARGO

DIRECTORS’ & OFFICERS’

MOTOR FLEET

GENERAL LIABILITY

PROFESSIONAL INDEMNITY

MARINE LIABILITY

PROPERTY & BUSINESS INTERRUPTION

Back to map

Italy

Market experiencing some changes although it is too early to assess whether this will be a progressively firming environment.

  • Property & business interruption has been particularly affected by rate rises
  • 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

Back to map

Spain

Local insurers are competing for mid-market buyers, global clients have fewer insurer options, meaning some sectors are seeking London or international capacity.

  • Some firming of rates in property, construction, marine & liability with reduced lead capacity in energy and liability lines
  • Some insurers leaving the motor market, leading to capacity constraints and rate increases
  • Rate increases for D&O, especially for accounts with large losses

CYBER

MARINE CARGO

DIRECTORS’ & OFFICERS’

MOTOR FLEET

GENERAL LIABILITY

PROFESSIONAL INDEMNITY

MARINE LIABILITY

PROPERTY & BUSINESS INTERRUPTION

Back to map

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

LOW

Rates flat to down with capacity available. Continued insurer appetite with some flexibility on coverage and deductibles

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

How will your organisation respond to the changing insurance market?

As the market becomes more selective, buyers need to be proactive around the renewal process and improve the marketability of their risk.

This report focuses on what to anticipate from a changing market and why this should be a priority for your organisation. It includes steps that you can proactively take to manage the expectations of your business stakeholders and deliver an optimal outcome.

Download full report