LOW
Rates flat to down with capacity available. Continued insurer appetite with some flexibility on coverage and deductibles
Is the hard markethere?
The final quarter of 2019 saw insurers make a decisive break towards significant rate increases across more lines.
Click a country on the map to learn more
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 – February 2020
Ireland
The cyber market has firmed considerably in a short time and the financial lines market continues to firm. Property capacity on higher hazard industries is challenging and some leisure businesses are closing as unable to find economic insurance cover due to withdrawal of London capacity.
- Considerable firming seen in the cyber market
- 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
United Kingdom
Market is entering a far more disciplined phase with insurers expecting sufficient risk information and allowing enough time for renewals. Markets are becoming increasingly slow in providing renewal terms, with little time for clients to look at options.
- Specific areas of concern include D&O, crime and professional indemnity
- Professional indemnity remains one of our biggest challenges leading to rate rises in construction, design and other related professions. In addition, significant reduction in capacity
- Food and waste are challenging sectors for PBI with insurer focus on risk management quality
CYBER
MARINE CARGO
DIRECTORS’ & OFFICERS’
MOTOR FLEET
GENERAL LIABILITY
PROFESSIONAL INDEMNITY
MARINE LIABILITY
PROPERTY & BUSINESS INTERRUPTION
Germany
Clients with poor loss records and/or limited risk management investment are seeing premium increases and facing capacity constraints. The market is firming.
- Rate increases in marine cargo due to a shrinking capacity
- 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)
CYBER
MARINE CARGO
DIRECTORS’ & OFFICERS’
MOTOR FLEET
GENERAL LIABILITY
PROFESSIONAL INDEMNITY
MARINE LIABILITY
PROPERTY & BUSINESS INTERRUPTION
Norway
Increases and capacity is driven by loss history, US exposure and historical pricing but there has been a marked firming for GL and PL and recall for the automotive sector. Commercial real estate is stable due to the strong local insurers.
- Market changes have seen a significant firming across GL and PL
- D&O insurers continue to focus on risk selection with reduced capacity/increased premiums for challenging risks
- Cyber insurers have a better understanding of risk and look at risk selection
CYBER
MARINE CARGO
DIRECTORS’ & OFFICERS’
MOTOR FLEET
GENERAL LIABILITY
PROFESSIONAL INDEMNITY
MARINE LIABILITY
PROPERTY & BUSINESS INTERRUPTION
Sweden
D&O insurance has seen restrictions on both primary and excess layers due to an increase in Securities Class Action Lawsuit filings. Regulatory proceedings are on the rise with insurers withdrawing capacity from the market. The commercial crime market continues to be restrictive with higher deductibles and premium rate increases.
- The market is firming with rate increases on marine cargo and risks are being analysed more carefully
- The EPL market is firming with a reduction in capacity and adjustments on both deductibles and premiums with regulatory changes contributing to more restrictive underwriting
- Placement challenges for product recall (automotive) and PI (financial institutions)
CYBER
MARINE CARGO
DIRECTORS’ & OFFICERS’
MOTOR FLEET
GENERAL LIABILITY
PROFESSIONAL INDEMNITY
MARINE LIABILITY
PROPERTY & BUSINESS INTERRUPTION
Denmark
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 firming 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
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
Netherlands
Recent sudden hardening on cyber. Premiums up and capacity down on especially large placements due to recent increase in claims activity. Increases seen in marine cargo along with an increased demand for underwriting information.
- Cyber remains high profile with increasing rates and a reduced capacity
- The property portfolio will see rates increase and more sectors have become distressed (food, cold storage, waste & recycling, woodworking) leading to capacity constraints
- Underwriters are looking for moderate increases and/or restrictions of cover for clients with adverse loss records in marine cargo
CYBER
MARINE CARGO
DIRECTORS’ & OFFICERS’
MOTOR FLEET
GENERAL LIABILITY
PROFESSIONAL INDEMNITY
MARINE LIABILITY
PROPERTY & BUSINESS INTERRUPTION
Belgium
Rates across cyber, D&O, General Liability, Motor Fleet, Professional Indemnity and Property & Business Interruption are firming quickly with rates increasing at 10% or more together with a marked contraction in capacity
- Firming rates and reduced capacity seen across cyber, D&O, General Liability and Motor Fleet
- Motor fleet rates have increased with more restrictive terms and conditions
CYBER
MARINE CARGO
DIRECTORS’ & OFFICERS’
MOTOR FLEET
GENERAL LIABILITY
PROFESSIONAL INDEMNITY
MARINE LIABILITY
PROPERTY & BUSINESS INTERRUPTION
France
Market is firming considerably on D&O, Professional Indemnity and Property & Business Interruption. Renewals are taking longer with limited markets to lead the largest programmes. Long term agreements and rollovers are difficult to obtain.
- 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 agreements
CYBER
MARINE CARGO
DIRECTORS’ & OFFICERS’
MOTOR FLEET
GENERAL LIABILITY
PROFESSIONAL INDEMNITY
MARINE LIABILITY
PROPERTY & BUSINESS INTERRUPTION
Switzerland
There’s been a marked firming of rates for D&O and Professional Indemnity within Financial Institutions – less so in the commercial marketplace. General Liability is stable although we have seen increases for Life Sciences and Pharma.
- Liability is seeing stable premiums and flexibility
- There is an increase in cyber claims, but the market for buyers remains solid
CYBER
MARINE CARGO
DIRECTORS’ & OFFICERS’
MOTOR FLEET
GENERAL LIABILITY
PROFESSIONAL INDEMNITY
MARINE LIABILITY
PROPERTY & BUSINESS INTERRUPTION
Italy
Market is giving signals of firming in property and D&O but most other lines remain stable.
- Property and D&O have been particularly affected by rate increases
- 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
Spain
There’s a significant firming in the market across D&O, general liability, marine cargo, marine liability, professional indemnity and PBI – which is more significant for associations, medmal, engineering and construction. The D&O market is still firming across prices, conditions and capacity.
- PI and PBI have seen a significant firming for associations, medmal, engineering and construction
- Limited capacity in waste management and food
- Large construction projects are seeing challenges in capacity and conditions
CYBER
MARINE CARGO
DIRECTORS’ & OFFICERS’
MOTOR FLEET
GENERAL LIABILITY
PROFESSIONAL INDEMNITY
MARINE LIABILITY
PROPERTY & BUSINESS INTERRUPTION
Portugal
Rates are increasing and capacity is contracting on professional indemnity. 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
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: 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 – February 2020
A decisive break towards a hard market
In June 2019, Aon’s Navigating a Changing Insurance Market report found a market in transition as rates across many lines and geographies had begun to increase after a long and sustained soft market.
If there was any question as to which way the market would go, then the last quarter of 2019 dispelled those doubts: it’s clear we are heading towards a hard market.
With some risks becoming increasingly difficult to insure via the traditional insurance market, organisations are looking for ways to reduce the impact of shifting market conditions.
Our report focuses on what you should anticipate from the 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 control your Total Cost of Risk.
Download full report* & February 2020 heat map
*Full report first published in June 2019