Market Conditions and Rate Predictions
Key Takeaways
General Market Outlook
The 2025 rate environment is expected to mirror that of 2024, with stable premium conditions and potential reductions based on risk profiles and market competition.
Rate Observations in Great Britain and North America
Primary insurance rates: Decreasing between 0 to -10 percent in North America and -7.5 to -12.5 percent in Great Britain
Excess insurance rates: Expected reductions between 0 to -10 percent in North America and -7.5 and -12.5 percent in Great Britain
Market Competitiveness
New entrants are adding capacity, increasing competition
Established insurers are broadening their risk appetite
Asset managers continue to benefit from strong insurer appetite, leading to broader coverage and improved pricing
Insurers are aggressively deploying capacity in cyber insurance, with limits of up to 75 million US dollars and British pounds for excess cyber programs under the CyXS Facility.
Insurers are demanding greater transparency in AI adoption due to concerns over misinformation, fraud, and regulatory scrutiny on firms misrepresenting AI capabilities.
[1] For NA, applicable to non-publicly traded investment management D&O/E&O and fund D&O/E&O. This does not apply to public company D&O or Private Equity.
