Find smarter ways to position your risk to markets through the latest insights across multiple insurance lines.
Cyber-Risk-Management-and-Insurance|Direct and Facultative|Financial, Executive and Professional Risks (FINEX)|Risk Management Consulting
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A brief update this time amid continued favourable market conditions across most insurance classes.
Our message remains consistent: well-managed providers with a clear, strategic approach to insurance placement and informative market presentations continue to attract strong insurer interest and alleviate any barriers, driving the most competitive terms.
Headlines H1 2025
Motor fleet remained challenging despite the rate increases reducing. Most other lines of cover experienced premium reductions as a result of focused marketing strategies.
Social inflation, trade tariffs, global instability and public sentiment are driving increased claims costs in liability and motor.
Broader coverage options and cover flexibility are being offered to differentiate insurers.
No expectation, at this juncture, of significant change as we move towards 2026.
Property damage and business interruption
Property market continues to be extremely competitive, with ample capacity and typical rate reductions of -20% for risks with low hazard / natural catastrophe exposures.
Insurers are broadening coverage and offering more flexible terms to stay competitive.
Long Term Agreements (LTAs) and rate stability deals still being offered, along with cancel and re-write options with provision for rate reductions.
Stretching the current primary layer and restructuring the excess layer(s) can prove favourable.
Supply chain issues and trade tariffs are impacting businesses, with Business Interruption reviews recommended to ensure cover is optimal.
Outlook
Competition remains strong, for well-managed risks, with good claims experience and rate reductions of -20%.
Clear and concise articulation around risk management approach remains a focal point and business continuity plans remain essential for delivering positive marketing results.
Liability
Liability market continues to be extremely competitive for high-quality, risk-managed risks, attracting substantial rate reductions of up to -30% with an average reduction of -10%.
Poor-performing accounts will still see significant increases.
Cancel and rewrite of Long Term Agreements (LTAs) still available in isolation or as package deals with property/business interruption.
Continuation of widening of abuse cover and more openness to discussing a claims-occurring and non-aggregated basis, even for standalone abuse cover.
Insurer concerns over Per and Polyfluoroalkyl substances (PFAS) remain.
Inflation, trade tariffs, and global instability are influencing underwriting decisions and risk appetite.
Outlook
Overall capacity remains good and competition is strong, characterised by an organisation’s positive attitude toward risk management, evidenced by targeted risk management investment and limited claims experience.
Evidence of robust health and safety risk management remains key, as is the interrogation of claims to understand loss trends and demonstrate post-loss mitigation.
Motor fleet
Average rate increases up to +7% for risks with low claims experience and evidence of strong fleet management.
Whilst claims inflation improved throughout 2024, it is expected to be 6-8% during 2025.
Labour rates increased by 14% and vehicle repair networks are adjusting to cater for increased electric vehicles (EVs).
Personal injury claims have increased by 23% with the whiplash tariff up by 15%.
Supply chains are becoming more resilient, with claims frequency at -10% across the market.
EV’s are approximately 30% more expensive to repair than non-EV vehicles.
Credit hires of replacement vehicles during repair still 13% longer in duration than pre-COVID.
Outlook
While there is appetite to underwrite well-performing or significantly sized fleets, many insurers are still looking for +7% on well-run risks.
Electric vehicles and new technology remain hot topics with insurers.
Claims cleansing and effective risk management remain essential for securing the most favourable terms at renewal.
Medical malpractice
H1 2025 continued the trend of consistent capacity from insurers and improved conditions for well-managed risks, those able to evidence strong risk management and a positive claims experience.
Points of note:
Availability of rate reductions for remarketed risks
Careful review of terms & conditions required when comparing quotes to ensure wordings remain optimal
Abuse cover extremely limited/unavailable in some instances under the medical malpractice cover.
Outlook
For the remainder of 2025, we anticipate rates will remain flat on average, with rate reductions of up to -5% available to providers who demonstrate convincing risk management leading to positive and/or improving claims experience when remarketed.
Market remains competitive with rates of flat to -20% being achieved.
Amble capacity is still available, and wording improvements can be negotiated
Outlook
For the remainder of 2025 into 2026, we expect these positive conditions to continue, with most providers enjoying rate reductions.
Providing detailed underwriting information around governance, risk, and compliance controls remains essential to secure improved pricing.
Cyber
H1 2025 saw exceptionally favourable conditions, with very competitive rates and significant pricing reductions despite a turbulent risk environment in H1 with multiple incidents reported in mainstream media.
Increased policy limits are being purchased for lower premiums.
Capacity is plentiful, supporting ultra-competitive market conditions, with strong competition from insurers to retain clients, continuing the trend prevalent since the latter half of 2023.
Extremely appealing cover and pricing are persuading some clients to tactically enter the cyber market or to increase the limits they purchase.
Clients continue to utilise market-leading cyber insurance innovation to expertly tailor policy coverage to their specific wishes
Recent UK retailer/healthcare and other sector attacks have highlighted the financial impact of cyber-attacks and increased demands for bigger limits. However, not enough to alter the capacity supply and demand status quo currently.
H1 showed that humans remain the greatest strength and weakness in protecting against cyber-attacks. Malicious actors continue to find new and innovative ways of exploiting this dynamic.
The connection between global connectivity, supply chains and systemic risk remains highlighted by recent attacks; when issues arise, the impact has been significant.
Equally, the increase in attacks this year has put more pressure on providers’ executive teams. They are expected to show a strong understanding of cyber risk and readiness to respond to incidents.
They also need to justify their cyber insurance decisions, especially when there is no coverage or only low limits, despite the current buyer-friendly market.
H1 showed that humans remain the greatest strength and weakness in protecting against cyber-attacks. Malicious actors continue to find new and innovative ways of exploiting this dynamic.
Outlook
As capacity has flowed into the cyber insurance market consistently over the past three years, it seems reasonable to predict that capacity will remain plentiful through 2025 into 2026. H1 2025 has seen many clients enjoy results previously unachievable; whether these terms are sustainable come next renewal is less certain.
Cyber maturity of health and social care providers, emphasising the adoption of key cybersecurity controls and processes, will remain a focus for insurers. Regular cybersecurity training to enhance employee awareness and reduce human errors remains critical.
Organisations with robust cybersecurity can look forward to continued pricing reductions, depending on when they last remarketed. We expect insurers to try to counter further downward pressure, citing the volume and increasing value of claims.
Further H1 2025 perspectives
Crime
Pricing remains stable and competitive, generally with rate pressures on risks with meaningful social engineering participation.
Ample competition for mid-sized providers.
Increased threat of claims from criminals using AI or deepfake scams and “Quishing” has increased - a phishing attack involving scanning a QR code.
Outlook
The GB Crime insurance market is expected to remain stable through 2025 into 2026.
However, given continued social engineering fraud and AI/deepfake attacks, insurers remain vigilant about this evolving area of risk.
For specialist guidance on smarter ways to present your risk, get in touch
The percentages have been presented as rounded figures for ease. All rate changes are for guidance only and vary depending on risk profile and individual circumstances.
