Global Insurance Marketplace Insights Q1 2026 - Europe

DENIS BICHERON: Hi, thanks.

NICK HOLMES: I'll start with just giving a general summary of what we're seeing in the region, and then allow Denis and Stef to talk through the key trends that they're seeing in France and Netherlands, respectively. But just from a general point of view for Europe, I think it's fair to say the market continues to remain highly competitive pretty much across all sectors, really driven by continued carrier profitability and equally aggressive growth strategy. That's keeping rates in most sectors soft with surplus capacity in most sectors.

We're seeing in the property area around the 10-12% pricing reductions in most areas, not uncommon to see rate reductions in excess of 20% 30% particularly those placements with good losses and low tax exposure. On the casualty side, a little bit more soft or stable, although we are continuing to see high single digit reductions, although US exposed is a little bit more stable with carriers being a little bit more careful in terms of how they're deploying capacity. That's really driven by continued concerns around claims inflation, social inflation in the US.

So from a general casualty point of view, ample capacity, good competition, rate reductions in most areas, but those with US exposures, yeah. Carriers remain a little bit more cautious. Overall from a European market, it continues to be a great market for buyers with ample capacity that I mentioned in most sectors, new markets coming into Europe, continued aggressive behavior by carriers to retain current exposures, and really driving continue to drive rate reductions in most areas and most countries across the region.

It really does present a great opportunity for clients to really review existing programs, potentially buying higher limits in areas like PDBI, liability towers, taking opportunity to review coverages to really drive fewer exclusions, enhance extensions in areas like cyber, supply chains. And as I mentioned, restructuring programs, adjusting retention levels, considering alternative layering, really to maximize the competition that we're seeing amongst insurers.

LTAs (long-term agreements) equally continue to be available in most sectors. And it's really, again, an opportunity for clients, for businesses to optimize total cost of risk, to assess the premium versus retained losses and use those savings to invest and continue to invest in risk protection. So as a summary for Europe, probably as the trends that we saw in Q4, we've certainly seen the soft market environment roll into Q1.

No expectation really to see a change in that for the foreseeable future. We continue to see strong competition amongst incumbents in the region, incumbent insurers, but equally a number of new entrants coming from different parts of the world, particularly from London into Europe. But equally, we're seeing increase of markets from parts of the world like Asia coming into our region as well. So good competition, good environment for clients, and good opportunities, as I mentioned, to really reconsider structure of programs.

It'd be remiss of me not to mention and make reference to obviously from a perspective of the current conflicts. At least from a P&C point of view, hasn't really had any material impact as yet from the pricing perspective, although with the likely impact from inflation, the impact on global trade disruption that will no doubt create uncertainty and could start to trigger some adjustments from a pricing point of view in certain sectors.

Where we are seeing some quite dramatic impacts is certainly in the marine and aviation sector specific around war risk, but equally in areas like political violence, terrorism, with insurers really tightening terms, reassessing exposures, and of course, the overall impact from the crisis in the Middle East will really have a significant impact or potential significant impacts on the energy sector, the oil and gas, which will undoubtedly drive higher prices, impacts from a supply chain disruption.

And as I mentioned, through inflation, claims inflation, which could start to see an impact on the market overall. But at the moment, and with exception to marine and aviation, war risk, and PV (Political Violence) and terrorism, the rest of the market remains stable with continued capacity and pricing available.

So with that, I'll perhaps turn your attention now to our two distinguished guests. And maybe I'll start with you, Denis, from a French perspective, the greatest share with the audience your insights and views from the French market. Over to you, Denis.

DENIS BICHERON: Yeah, thank you very much, Nick. And when we talk about the insurance market today, we often hear broad statements. I mean, strong results, plenty of capacity, a softening market. All of this is true. All of this is true, but it doesn't tell the full story.

And from a broker's perspective, what we see on the ground is no longer one single market, but two different market realities, I mean, according to the segmentation. Insurers are financially strong. I mean, no debate. If we look at insurers earnings, capital position, and solvency ratio in France, the industry is clearly entering 2026 from a position of strength, but underwriting discipline remains strong.

Loss experience overall is under control. Investment income has become a meaningful contributor again and balance sheet is robust, and capital is abundant. But what we see today is that we have one market but two very different realities. I will make the distinction between the large and corporate public sector and the mid-market. I mean, mid-market and small business, because what we see today are large corporate accounts, and particularly in some segments of the public sector, we see some kind of signs of saturation, because the market is so soft, so widespread use of long-term agreements.

This is something that you see in France on, I would say, each and every line-- property, casualty, marine, and even financial lines and even cyber. I mean, we placed a business on cyber, on long-term agreement on three years, which is quite new on the market, and especially when you look at the situation of cyber, five years ago or six years ago.

So portfolios are heavily committed, limited organic growth opportunities. So it means that this creates a market for large corporate clients, which looks soft and it is soft, but it is locked as well. So there is a trend in France is for the SME and mid-market. This is a place where insurers want to grow. And so this SME and mid-market market remains very dynamic.

And they are-- because the insurers are focusing on real growth potential, they are focusing on higher renewable flow. So it means that we see many large corporate carriers. They are not leaving. I mean the corporate segment, but they are moving to the mid-market segment.

So the competition that we have been seeing, I mean, for the last two years or three years on large corporate segments, is going down to the mid-market segments. And again, it's creating opportunities on this segment. We have to remember that WTW France, it's headquartered Puteaux (Paris), but as well regions and a strong regional network. And this is an asset for clients to get the best of the market.

NICK HOLMES: Fantastic, thank you. I think it's really valuable to highlight the distinction we're seeing between the major account, the multinational, and the SME mid-market space. So thank you, Denis. Stef, from a Netherlands perspective, how are you seeing the current and perhaps some views on the market ahead?

STEF BANK: Well, the clients in the Netherlands actually are also highly connected to the trends of the international insurance industry. So the trends, what we see and the softening of the market is also very much recognized in the Netherlands. The markets are eager for new business, especially if the loss ratios are accurate and if it's perfectly within their risk appetite.

We also see the risk appetite is broadening, actually, for a lot of product lines. That hunger for new business drives up the capacity, and the capacity actually is the reason why clients have more opportunity to extend cover or benefit from the softening of the market in terms of pricing. The impact is significant where we see the 150% 160% capacity provided for quite complex placements, which is also directly offered in the Netherlands, but also the international reinsurance market is eager to get a part of the pie.

New markets are also joining in the Netherlands. So you see the capacity is increasing more and more. Of course, like the knee. And you also mentioned Nick earlier the dedication by underwriters to make sure that US liability or natural catastrophe risks are modelled accurately continues. At the same time, we also see the opportunity for clients to extend cover or increase limits there as well. So overall, same trends, what you described in Western Europe and in France, what we see recognized in the Netherlands.

NICK HOLMES: Fantastic. Thank you, Stefan. And perhaps if we had a crystal ball, do you have either of you have any views? Maybe as we're seeing with the Middle East conflict, as I mentioned, perhaps limited to marine aviation, war risk exposures, PV (Political Violence) terrorism, but any perhaps areas that you think could start to impact the market? Or do you see the continued competition amongst insurers across most sectors keeping the market particularly soft in most areas with ample capacity? Any longer term views that perhaps you might have?

STEF BANK: Well, to be honest, the major concern obviously for the market, what can impact the market is the overall financial system. So the moment we recession is entered or any impact will be by all the political unrest in the world be having on the financial markets that can have direct impact on the capacity available and that can turn the market instantly. The same as when we enter the cat (catastrophe) season again in two months. Once you see that one major event can impact the stability of the market or the instability of the market.

NICK HOLMES: Right.

DENIS BICHERON: Now, what we see today in France, I mean, so I would say no direct impact of what's happening in the area, but indirect impact in terms of economic situation of our clients because of the oil price. We see some companies, for example, of buses. I mean, they are stopping or reducing the activity. It means that this kind of clients, they would like to get savings, I mean everywhere and obviously from their insurance company.

So I would say what we see today is that the carriers are not directly impacted by what's happening there. But there will be a huge need of savings coming from the clients again, because the clients are in a difficult economic situation and we have no crystal ball obviously, but we really don't see how it will improve and win in the next weeks.

So we see the demand growing in France for new savings from the insurance markets. Keeping in mind that as we say, the insurance market has made huge profits in 2025. So there is a difference between our clients and the market.

NICK HOLMES: Yeah, I fully agree, Denis, is clearly going to be a time when the insurance market as a whole needs to step up to meet the challenges that our clients will undoubtedly face. Denis, Sef, thank you very, very much for joining the podcast. Thank you all for listening and speak to you again very soon. Thank you all.

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