A new report by global re/insurance brokerage Aon suggests that the commercial European insurance is beginning to show a more consistent shift towards firmer conditions.
For buyers, this shift is likely to result in higher rates, capacity constraints, and a tightening of terms and conditions.
Aon says this shift is partly a result of insurers responding to high levels of both man-made and natural catastrophes, as well as increased operational costs and evolving buyer demands and risk exposures.
Aon says the extent to which buyers are experiencing these effects varies from country to country across Europe and by line of insurance.
The report found more challenges when buyers do not provide enough underwriting information or allow sufficient time for their renewal process.
At the same time, if a business has a good loss record, supporting data, proactive risk management programmes and a thought through strategy, Aon says there are still deals to be done in the market.
In the UK, Aon believes the commercial insurance market is entering a more disciplined phase, and that buyers will need to focus on providing sufficient risk information and allowing enough time for the renewals process.
D&O, marine cargo and professional liability are the business lines most impacted by the changing market, whilst food and waste are challenging sectors for property and business interruption, with a focus on risk management quality.