Rate rises +10% on the horizon for UK, Germany and Netherlands: Aon

Insurance buyers in the Netherlands, Germany and the UK should expect rate rises in excess of 10% as the impact of a shifting market begins to take hold, according to new data from Aon. 

Buyers in the Netherlands are likely to be hardest hit with the global broker warning: “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.”

More specifically, Aon notes property sectors in the Netherlands have become distressed, in particular, cold storage, food and areas of real estate with attritional losses. There is also a reluctance to write primary liability on international risks and markets have pushed strongly for rate increases in commercial D&O.

For insurance buyers in the UK, Aon data shows the 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. Professional indemnity challenges were triggered by the Grenfell Tower block fire leading to rate rises in construction, design and other related professions. Food and waste are also challenging sectors for PBI with insurer focus on risk management quality. 

German clients with poor loss records and/or limited risk management investment are seeing premium increases and facing capacity constraints.

Aon data shows Switzerland is thus far avoiding overall hardening market trends. “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 and few cyber claims translate to a good market for buyers. Liability is seeing premium decreases and flexibility,” said the report.