European brokers should be aware that the A&H and PSR markets remain highly competitive, supported by increased capacity and insurers actively seeking new business. This additional capacity is helping to keep rates stable and pricing attractive across key product areas.
James Tyrrell joined in March enabling the team to continue to focus on strengthening our overall offering, creating greater bandwidth to deliver consistent high service to our brokers and clients without major structural changes.
Market conditions continue to soften as capacity expands, highlighted by the recent launch of yet another marine MGA. This increased availability of capacity is driving heightened competition across the market, with strong downward pressure on pricing and widespread rate reductions across most sectors.
At the same time, underwriters are demonstrating a broader appetite for a wide range of risks, showing particular interest in diversified, distressed, and complex exposures, as well as welcoming new business entering the market.
In the European casualty market, London is becoming an increasingly competitive option for European insureds as rates continue to soften across most coverages, prompting London insurers to take a stronger interest in businesses and projects across the continent.
Insurers are demonstrating improved collaboration across specialties - such as product recall with product liability, and environmental impairment liability with general liability - enhancing their ability to deliver integrated solutions.
The market has also benefited from roughly EUR100m of additional capacity over the past year, driving heightened competition and creating attractive opportunities for brokers seeking competitive placements.
Recent easing of Lloyd’s restrictions around coal and other ESG related requirements has broadened underwriting appetite, making the London Market an even more accessible and flexible resource for European brokers.
New capacity continues to enter the construction market space with appetite to broaden client base and offer solutions to European buyers. Some major local carriers remain extremely competitive for certain perils (Dutch flood for example), but internationally appetite is there, with a preference for solution based offerings to add value rather than chasing falling pricing. However, where aggregations of construction risks can arise, London-based capacity is showing how competitive it is by offering more competitive solutions than domestic markets.
Reinsurance purchasing is increasing, with many insurers looking to administer their capacity through domestic insurers to take shares of business that they would not otherwise see. The opportunity to bring these capacity providers forward as a local/regional broker should not be ignored to provide improved transparency to clients around their carriers, as well as reduce the embedded costs of working through a local insurer and reinsurance broker, which are often unseen costs.
Considering blends of local insurer participation and international insurer participation to help balance market dynamics should be considered and there is substantial appetite from international insurers to do so.
Capacity is increasing in the market with notable increase in insurers being prepared to increase levels of risk retention while rates continue to see a competitive environment. Deductibles are broadly being maintained, with an acceptance to reduce for smaller risks are still being considered. More technical or heavy risks are seeing more resistance to market softening however with rating, cover and deductible structuring seeing slight competitiveness, but not as significant as more standard construction.
Insurers continue to be aggressive on pricing amidst intense competition. Premiums continue to fall up to 10%, aligning with trends across Europe. Conversely, the US observed more modest reductions, around 3%, despite its competitive market. Although certain industries, like retail, have been more susceptible to cyberattacks, insurers have maintained a neutral approach to pricing. However, there has been a continued emphasis on cyber controls within sectors prone to high claims volumes, including healthcare, financial institutions, and communication, media, and technology.
Coverage
Over the past year, cyber insurance has expanded significantly rather than becoming more restrictive, with notable advancements in areas such as critical supplier and supply-chain outage cover, cyber crime and social engineering, AI-related risks, operational technology, systemic outage protection, and privacy and biometric liability. Insurers are increasingly adapting to real-world events and technological developments, ensuring policies better align with the complexities of modern cyber risks.
Limits
Markets continue to offer more capacity as competition continues to grow. 2025 saw an increase of policyholders increase their coverage limits. The surge in cyberattacks targeting UK retailers has sparked renewed discussions among policyholders, including those who recently renewed their programmes, prompting them to reassess their limits and explore additional coverage optons. Board members are increasingly raising concerns about whether the organisation has secured adequate coverage and are questioning the due diligence process behind determining those limits.
Claims
Ransomware claims spiked in early 2025 compared to late 2024, accompanied by an increase in distributed denial of service (DDoS) attacks with extortion demands and frequent data breaches driving cyber claims. The UK retail cyberattacks, linked to the Scattered Spider group, underscore ongoing risks in ransomware and cyber extortion. This group, comprising young, english-speaking individuals from the US, Canada, and the UK, stands out for prioritising notoreity over financial gain. Using social engineering tactics to manipulate customer service and IT staff, they exploit retailers’ large teams and open access points, though industries with broad attack surfaces and weak cybersecurity face similar risks.
London market insurers see a multitude of cybersecurity controls as effective for mitigating risks but the following are a list that they deem to be the most material, in no particular order: Multi-Factor Authentication (MFA), Patch and Vulnerability Management, Security Awareness Training, Loggin and Monitoring, Network Security Controls, Incident Response Planning, Endpoint Detection and Response (EDR), Backup and Recovery, Email Security, and Privileged Access Management (PAM).
The market continues to soften meaning that underwriters are looking to retreat towards the MGA and broker coverholder model.
We are seeing more and more new set ups as well as some consolidation in the MGA space. Our specialist knowledge and experience – as well as free advice is helpful to players who are looking to make sense of the number of underwriting authorities they find themselves with placed with various different players. In parallel, we specialise in helping existing players try to develop complementary offerings to their already mature books of business.
With some notable regional exceptions, Europe continues to be an underdeveloped MGA space, attracting new players, as well as insurers willing to support the right specialists with our support.
We continue to monitor what’s happening with catastrophe losses, particularly in southern Europe, and the drive continues at governmental level to offload the taxpayer burden onto the insurance industry. Italian and Greek catastrophe exposure is one area most under the radar. Climate events never seem to be too far away from the news, with storms in the Iberian Peninsula breaking records year on year.
Miller continues to lead the way with new solutions in an increasingly uncertain world. Increasing capacity in the market helping ease the pain. The political and economic environment is unclear at this time and we have capacity to help our specialist client for many associated types of risks, for example Terrorism and Surety/Credit.
As we move further into 2026, downstream energy insurers continue to benefit from the soft market conditions that developed through 2024 and 2025. That optimism has been moderated by a sharp deterioration in loss activity during 2025, with refining and processing losses reaching USD4-4.5bn by year end. Six of the eight largest losses originated in the U.S., slowing the pace of softening but not reversing it. Despite these challenges, the market remains broadly favourable for buyers. Downstream portfolios have shown resilience, and treaty renewals into 2026 have proceeded smoothly, with some reinsurers still offering reductions at 1/1. The overall landscape remains competitive, though underwriters are becoming more selective as they react to recent loss trends.
Pricing continues to decline, albeit more gradually than in earlier phases of the softening cycle. Well-performing downstream clients are still achieving reductions of around 10-15%, supported by strong capacity and insurer appetite. However, the severe start to 2025 - with USD1.5bn of losses recorded in Q1 alone, exceeding the entirety of 2024 - has reinforced underwriting caution. As 2026 begins, the market shows early signs of stabilisation, with underwriters signalling a slower pace of reductions while remaining aggressive for high-quality, large downstream risks. Ultimately, rating outcomes continue to hinge on loss experience, engineering strength, risk management maturity, and natural catastrophe exposure.
ESG considerations remain inconsistent across the market, similar to conditions observed in 2024 and 2025. Some European insurers continue to apply stringent ESG underwriting frameworks, whereas others take a more flexible approach. All carriers, however, are expected to demonstrate to senior management that insureds have credible, funded carbon transition plans aligned with 2030 and 2050 targets. As scrutiny increases from boards, regulators, and capital providers, sustained client engagement and strong documentation remain essential.
Valuations continue to be a critical area of underwriting focus. Insurers expect up-to-date, independently verified valuations that reflect inflationary pressures and supply chain volatility, supported by evidence of professional valuation analysis in recent years. Where valuation adequacy cannot be demonstrated, insurers are increasingly applying rate loads, higher deductibles, or average clauses.
Capacity in the downstream energy market remains stable and competitive. Global capacity levels are steady, with no major new entrants or exits, and downstream premium volume stands at approximately USD3.5bn. Large premium-bearing accounts remain highly attractive, supporting a competitive marketplace. Midstream and LNG exposures are particularly favoured, driven by strong performance, increased capacity, rising natural gas consumption, and robust LNG demand. Realistic available capacity entering 2026 remains strong and is expected to continue supporting favourable outcomes for large global placements.
Overall, 2026 remains a buyers’ market, though the pace of softening is slowing as the industry assesses the potential for continued loss creep from 2025. Rate reductions remain accessible, but underwriting caution is increasing. Capacity remains abundant, ESG and valuations continue to be major technical focus areas, and U.S. refining exposures face heightened scrutiny due to disproportionate loss activity. Meanwhile, LNG and midstream risks continue to attract capital and offer the strongest competitive dynamics. Downstream clients remain well positioned, especially where strong loss histories, engineering quality, and proactive ESG and valuation practices can be demonstrated.
In the general specie market, capacity continues to expand with the entry of new syndicates and managing general agents (MGAs), creating stronger downward pressure on rates and allowing for broader policy terms and conditions - an environment that remains highly favourable for buyers.
However, the rising value of precious metals, particularly gold, is creating challenges for underwriters, who are increasingly unable to offer higher courier limits.
To overcome this, we partner with a specialist courier service, enabling clients to access higher, fully insured parcel shipment limits despite the current market constraints.
The London hull and war market softening continues as new capacity enters the market. More and more of this additional capacity is coming in the form of start-up MGAs with a significant amount of senior underwriting talent moving into these vehicles. Private equity funding promises significant backing and build out into multiple business classes and opens up London-backed security to European markets.
This additional capacity sits alongside market losses which are continuing to chase down the increased profitability of the marine book and in particular War risk where the trend has moved from low risk low intensity losses to high risk high intensity losses which can wipe a year’s premium off the books in one event, this again due to carriers hunting down larger shares of risk, which reduces risk distribution but increases loss intensity.
We see European markets following the downward rating trends but without the intensity of change in London and this will naturally cause a swing in terms of geographical placement and again the trend towards MGA capacity being utilised.
Looking ahead, the market forecast appears to be veering towards a shorter soft cycle as the claims numbers and intensity start to increase, there will be increased focus on profitability data driven risk selection and efficiency of processing.
As a result, Miller is developing core marine management systems which are at the forefront of combining data, compliance monitoring and traditional marine market expertise working hand-in-hand to produce the best, most efficient and intelligent outcomes for all our clients and markets.
European brokers are operating in an exceptionally competitive W&I market where underwriting appetite remains broad across sectors, jurisdictions, and deal structures, and pricing continues to sit at historic lows.
UK operational businesses are seeing rates as low as 0.6% for operational transactions, with most sectors between 0.7-0.85%, while jurisdictions that traditionally attracted higher premiums - such as parts of the Middle East - are now achieving sub 1% or low 1% pricing.
Policy retentions have remained competitive with tipping, tipping and dropping, and nil retentions now common even for operational businesses, albeit less so on larger multi jurisdictional deals. Underwriters are also offering a nil de minimis on IP and tax warranties / indemnities, further reducing friction for buyers.
The overall dynamic is one of abundant capacity, aggressive competition, and continued pressure on both pricing and terms - meaning brokers need to stay close to market movements, differentiate through deal preparation, and help clients navigate where terms remain more constrained. This is where Miller’s dedicated M&A can really drive value for clients, come and talk to us to find out how we can help you.
The directors’ and officers’ (D&O) liability landscape stands at a pivotal crossroads as we move through the opening months of 2026. Following several years marked by aggressive price competition and diminishing premiums, the market is gradually shifting away from its prolonged "soft" cycle and entering a phase of cautious stabilisation. The era of dramatic double-digit discounts is largely over. However, competition persists due to an ongoing surplus of capital and new MGA entrants into the market. Most organisations can now expect renewals at flat rates or modest discounts, yet insurers are applying markedly sharper underwriting discipline, placing greater emphasis on risk quality rather than simply seeking to grow market share.
Rather than further price reductions, the current D&O market is characterised by a strategic pivot towards broader coverage enhancements. Insurers have become more flexible with policy language, offering refined definitions for insured persons and providing expanded protection for investigation costs in order to retain clients. This increased flexibility is being carefully balanced against a backdrop of rising settlement values and a more litigious corporate environment. Sectors traditionally prone to volatility, particularly technology and healthcare, continue to face intensified scrutiny and a more rigorous vetting process during renewals.
With the rapid integration of AI into business operations, insurers are increasingly alert to novel exposures. Notably, “AI-washing”, the misrepresentation of a company’s AI capabilities, has become a focal point for both regulators and shareholder litigation. Insurers are closely monitoring these trends, as such claims present untested risks and the potential for large-scale losses.
Beyond the technology sector, global economic pressures continue to cast a shadow in the form of rising corporate insolvencies. As companies contend with mounting financial strain, directors face increased vulnerability to mismanagement claims brought by creditors. In this environment, proactive risk disclosure and robust board governance have never been more critical, as directors and officers navigate a liability landscape that is not only stabilising, but also rapidly evolving in response to both economic and technological change.
Finally, while insurers have not yet reacted immediately to the geopolitical instability in the Middle East, this may change if the current trajectory continues. For companies with a large global footprint, we expect underwriters to begin requiring more granular questionnaires regarding regional exposure. For European insureds with operations in the Middle East, D&O insurers will be particularly concerned with potential shareholder derivative suits alleging that directors failed in their fiduciary duty to mitigate the predictable economic shocks caused by ongoing volatility.
The London D&F property market is experiencing continued softening as new capacity enters the market. This new capacity not only relates to Lloyd’s but also MGAs and auto follow facilities. The absence of significant losses, particularly from a Nat Cat perspective, has driven this trend. In addition, carriers are accepting larger shares of risks, which reduces the distribution. At the same time all insurers are looking for growth which increases the pressure on rating.
Conversely, most London insurers are restricted by their minimum premium requirements which often means that the London market is more expensive than domestic insurers particularly on straightforward risks where there is sufficient appetite in the local markets.
However, we have found success with our markets for diversified, distressed and complex risks, where the solution cannot always be found locally. ‘Distressed’ relates to many aspects including challenging occupancies, questionable risk management and bad loss records amongst others.
We also see success where local capacity is insufficient for specific risks. London often steps in with significant excess capacity that provides solutions for our clients where this does not exist in the local market.
The London market remains open for all; risks and once provided with relevant information we can turn quotes around very quickly.
The soft market that emerged in early 2024 has persisted into 2026, maintaining a highly competitive environment. Insurers continue to pursue growth aggressively, and premium discounts of up to 25% remain available, particularly for clients that can demonstrate strong risk management practices and robust operational controls. While conditions remain favourable for buyers, the outlook for 2026 is less certain following a series of significant catastrophic property losses in North America, which may place upward pressure on reinsurance pricing and influence capacity deployment in the months ahead.
Coverage offerings are continuing to evolve in response to climate change, technological developments, and shifting customer expectations. Flood risk remains a key concern across Europe, with insurers placing increased emphasis on exposure analysis and mitigation measures. At the same time, the definition of natural catastrophe risk has broadened, with secondary perils such as convective storms, wildfires, and freeze events now being priced more explicitly within policies. Cyber clauses also continue to be a focus of negotiation, with varying degrees of clarity and scope across the market as insurers work to better define coverage boundaries.
From a rating perspective, premium rates have reduced materially, with decreases of up to 25% continuing into 2026, particularly for placements in the London market. Long-term agreements remain popular and frequently include built in rate reductions across future periods. Although Hurricane Helene did not ultimately trigger reinsurance treaties, it heightened concern around inland storm exposures and reinforced the need for careful catastrophe modelling and risk assessment.
Insurer appetite remains strong, with markets actively seeking new business, though underwriting selectivity has increased. Decisions are increasingly driven by catastrophe exposure, loss history, required line size, and the nature of risk occupancies. Enhanced use of data and analytics is shaping underwriting and pricing decisions, with mixed occupation portfolios viewed favourably due to their diversified risk characteristics. In contrast, residential portfolios remain challenging, particularly where e bikes and e scooters are present, owing to heightened battery related fire risks.
Capacity across the market remains robust, supported by new entrants and continued consolidation following recent mergers. This has resulted in broader coverage options, more competitive pricing, and greater underwriting flexibility. However, non standard construction materials, particularly timber frame buildings, continue to attract scrutiny because of elevated fire exposure. Early engagement with insurers is therefore essential to secure optimal terms and align underwriting expectations from the outset.
January renewals have confirmed a shift to a softer market
There are record levels of traditional and alternative capital driving broad, risk-adjusted price reductions across most lines. However, insurers have generally maintained strict underwriting standards and kept higher attachment points.
Capacity has increased since the prior renewal cycle
Strong returns on equity for reinsurers, retained earnings, fewer major catastrophes, and record issuance of insurance-linked securities have boosted capacity. This increase has intensified competition despite underlying catastrophe activity and headline losses.
Multiple lines are experiencing rate reductions
Property and specialty insurance lines have seen double-digit risk-adjusted rate reductions, with abundant capacity. Casualty has softened selectively, due to worries about rising losses. As a result, casualty and financial targets are achievable, but are reliant on data quality and portfolio strategy.
Competitors are competing to deploy capital
Global reinsurers and alternative capital providers are using multi-line, portfolio and capital-markets-backed solutions to differentiate beyond price and secure their market share.
Current conditions are favourable for buyers, but fragile
These conditions depend on continued capital discipline and manageable loss experience. Expanding coverage is selective and analytics-driven with reinsurers rewarding detailed risk data. AM Best predicts further strengthening of casualty reserves into 2026.
European markets are very competitive with rates and pricing. They tend to write lower deductibles and rates across projects. London has had to become much more competitive to remain relevant (especially in the US), although are reluctant to slash rates and deductibles to try and match European terms.
2025 saw high demand for battery insurance, but rates have dropped sharply in recent years. This is mainly due to improved claims performance and greater confidence in battery technology. Unlike solar, where rates are falling in line with the market, battery rates are dropping because underwriters trust the technology and claims history.
We recently launched a facility for all SME business and have secured capacity from an MGA to provide us with up to USD15m on individual project basis.
The renewable energy insurance sector continues to experience falling premiums. Softening is extending beyond rates into terms. Very favourable for clients, especially on wind and solar. BESS rates are starting to soften further and starting to see some reductions. BESS are increasingly viewed as a risk driven by data. Underwriting for 2025-2026 places greater emphasis on software, control systems, and performance data to address concerns such as fire and thermal runaway risks.
The historic challenge of limited capacity in the P&C market has eased considerably, with insurers now showing strong interest and driving a noticeable softening through 2025 and into 2026. However, this increased appetite comes with practical barriers: traditional tendering processes can restrict new brokers and insurers from entering the sector, limiting competition.
Insurers are also demanding far more granular and detailed data on property portfolios so they can deploy capacity more intelligently and balance growth ambitions with disciplined risk selection. Additionally, longstanding loyalties to competing brokers continue to influence distribution decisions and create further challenges for market access.
European brokers must also remain aware of the local political landscape in each territory, particularly where public-sector funding affects the bodies responsible for developing, managing, and maintaining social and affordable housing. Shifts in government priorities or funding constraints can have direct consequences for the quality and condition of homes, which in turn influence both property and liability exposure. A clear understanding of these dynamics is essential for advising clients effectively and anticipating changes in risk profiles.
In the UK, Registered Social Housing Providers (RPs) are facing a significantly tightened regulatory environment following several legislative reforms since 2023. The Social Housing (Regulation) Act 2023 introduced sweeping changes, granting the Regulator of Social Housing enhanced enforcement powers and implementing four new mandatory Consumer Standards from April 2024. These standards require RPs to demonstrate stronger performance in safety, transparency, community management, and tenant engagement, alongside mandatory compliance with the Housing Ombudsman’s Complaints Code. At the same time, the Building Safety Act 2022, fully implemented by 2024 for higher risk buildings, has imposed strict obligations around safety case reporting, resident engagement, fire risk assessment, and continuous compliance management for “Accountable Persons”.
Further changes are expected through the forthcoming Renters’ Rights Bill, which proposes abolishing Section 21 ‘no fault’ evictions and transitioning most tenancies to rolling periodic arrangements. This will reshape eviction processes and tenancy management for RPs. Legacy legislation such as the Housing and Regeneration Act 2008 and ongoing welfare reforms—particularly the transition to Universal Credit—continue to influence financial stability, governance requirements, and tenant affordability.
Collectively, these regulatory developments carry major strategic implications. RPs must strengthen governance, data quality, and tenant engagement processes to withstand more rigorous regulatory scrutiny. Financial pressures, driven by rent caps, interest rates, and mandatory investment in existing housing stock, will reduce development capacity for many and force prioritisation of remediation, safety work, and compliance upgrades. With fire and building safety obligations now more stringent than ever, and consumer standards demanding greater transparency and accountability, RPs must embed compliance deeply into their asset management and long term planning strategies.
These evolving market and regulatory conditions reflect a broader shift toward stronger tenant protection, higher standards of housing quality, and more proactive oversight. Brokers and insurers operating in this space will need to adapt to these expectations, balancing the need for competitive insurance solutions with a clear understanding of regulatory pressures, housing sector funding challenges, and the increasingly data driven approach to risk selection.
Capacity is still increasing with new entrants to the market. The market has softened quickly but this has now slowed. Insurers are looking at adding value in different ways, broader wordings, and additional coverages.
Our team have access to specialist facilities in the personal accident, liability and contingency markets – this allows us to access a lot of capacity at preferential rates. As specialists in the area, their wordings are robust and stress tested by large and complex claims. If a European broker requires cover for an individual, organisation or event in the space, we are the best partner to help them obtain the best cover.
We have an inhouse binder that allows to quote and bind small to large risks with a limit up to EUR40m for event cancellation. We also have a terrorism lineslip for event cancellation that allows us to bind risks up to EUR40m. Along with the ability to approach the open market for larger risks.
As with the War Risks market, the Political Violence and Terrorism market is seeing plenty of new capacity enter, with new MGAs writing a broader range of political violence and terror coverage. This is leading to greater competition amongst carriers to win and retain new business in a relatively soft market. The London Market continues to provide the broadest range of coverage and some of the most competitive pricing available.
Given the current climate, we have seen an increase in demand for Active Assailant coverage with European clients starting to better understand the value and purpose of this coverage. Miller’s PV&T team are well-positioned to guide clients through the latest trends and provide clarity and reassurance in this complex area.
We are seeing new capacity entering the war risks market as we move into H1 and beyond. Several new MGAs are beginning to underwrite a broader spectrum of war-related exposures, contributing to increased competition among carriers seeking to secure and retain business in what remains a relatively soft market. The London Market continues to stand out by offering some of the most comprehensive war risks coverage and competitive pricing globally.
Considering ongoing geopolitical tensions and evolving conflict zones, demand for specialist war risks products - particularly those addressing state-sponsored hostilities and hybrid warfare - is on the rise. European clients are becoming more attuned to the strategic importance of war risks coverage in safeguarding assets and operations. Miller’s War Risks team is well-positioned to help clients navigate emerging trends, offering clarity and confidence in this increasingly complex and dynamic area of risk.
