Discover the key advantages of gaining coverholder status at Lloyd’s of London – and how working with Costero Brokers can accelerate the process.

If you’re building or scaling an MGA, winning capacity and distribution is half the battle. Becoming a Lloyd’s coverholder gives you a powerful route to achieve this – unlocking global licences, diverse syndicate capacity and long-term resilience. Working with an expert like Costero means you can get approved quickly and keep growing confidently. Below, we’ll unpack the key benefits, the market context for 2025, and how our specialist team helps MGAs and InsurTechs navigate the process at an accelerated pace.

Challenges that MGAs face in today’s market

For ambitious MGAs, particularly in North America and Australasia, the opportunities are clear – but so are the challenges:

• Selective capacity and changing appetites: Carriers are disciplined on new programmes, want clear evidence of underwriting control and credible data, and can pivot appetite quickly after CAT seasons or loss events. Securing the right limits at sustainable terms – and keeping them through the cycle – is a constant challenge.
• Continuity risk when you rely on a single market: If one partner re-sizes or exits a class, your product and distribution can be disrupted at short notice. Building resilience into your capacity model is no longer a nice-to-have.
• Cross-border growth friction: Expanding beyond one jurisdiction means navigating different licences, taxes, policy wordings and regulatory reporting – all while maintaining a consistent product and client experience.
• Speed to market vs. governance: Retail partners and customers expect rapid launches and iterative enhancements, yet you also need robust oversight: underwriting guidelines, audit trails, bordereaux quality, conduct risk controls and claims oversight that stand up to scrutiny.
• Data expectations have risen: Capacity providers expect clean, timely, reconciled data on premium, exposure and claims – with management information (MI) that supports pricing and portfolio steering. Weaknesses in data pipelines or bordereaux management can slow or stall growth.
• Distribution credibility: Retail brokers and other distribution partners look for paper strength, rating credibility and product stability. Start-ups and scale-ups must prove their staying power to win shelf space.
• Claims experience and customer outcomes: Delivering fair, prompt claims handling – whether in-house or via a third-party administrator (TPA) – is mission-critical for reputation and renewal performance, yet operationally demanding to evidence and manage.
• Macro volatility: Inflation, supply-chain costs and secondary perils are still influencing loss trends and capital charges, putting pressure on rate adequacy and available capacity.

To address these challenges, your MGA needs dependable, diversified capacity; the ability to scale across multiple territories under a single market framework; and the operational discipline and brand credibility that help you win distribution – setting up your programme for durable growth.

What is a Lloyd’s coverholder – and why become one?

Lloyd’s of London is the world’s leading marketplace for specialty risk—where MGAs and InsurTechs can access A-rated capacity, global licensing reach, and decisive underwriting partners to build, launch and scale programmes with confidence.

The market backdrop is constructive but disciplined. Lloyd’s delivered another profitable year in 2024 (combined ratio 86.9%) while still growing top-line by 6.5% – a signal of healthy appetite for well-governed, data-driven programmes. For MGAs with credible distribution and controls, that’s an opening to launch or expand with strong partners. (Source: Lloyd’s)

A Lloyd’s coverholder is a company authorised by a Lloyd’s managing agent to enter into insurance contracts on behalf of a syndicate under a Binding Authority agreement. That agreement defines exactly what you can quote, bind, and administer – including issuing documents, collecting premium and, where granted, handling claims. (Source: Lloyd’s)

There are now around 2,950 approved Lloyd’s coverholders globally, creating a mutually beneficial ecosystem. For Lloyd’s, coverholders enable a vital distribution channel that lets its syndicates underwrite locally without building local infrastructure. For you, becoming a coverholder empowers your business to scale and access new opportunities –  with Lloyd’s brand and strength behind you. (Source: Lloyd’s)

The top 5 benefits of becoming a Lloyd’s coverholder

• Access to diverse capacity in one market: Instead of relying on a single carrier, you can assemble a panel across 70+ Lloyd’s syndicates, each with different appetites and strengths – from CAT-exposed property to niche casualty and emerging risks – then build products that reflect your strategy. That creates more opportunity for higher limits, broader structure and robust pricing as you grow.
• Global licensing and scalable distribution: Lloyd’s licences in about 80 territories mean you can design multi-jurisdictional programmes efficiently, often via one contract framework (with local policy issuance where required). That gives you the opportunity to focus on more than just one territory, with the ability to cater for multiple jurisdictions under the same binding authority.
• Bigger limits and broader product scope: Because you can blend multiple markets on a slip (e.g., six or seven syndicates backing a binder), you’re able to stack capacity and widen appetite – for example, running separate binders for flood and wildfire, or adding a new peril without rebuilding everything from scratch. To your retailers and insureds, it feels seamless – while behind the scenes, you’ve built a balanced panel.
• Continuity through market cycles: If one participant changes strategy (say, stepping back from US hurricane), your panel approach makes continuity far more achievable. Others can often increase shares while you introduce a new partner at renewal – protecting your book and your distribution relationships.
• Brand, governance and product innovation: You benefit from the Lloyd’s brand and ratings, plus market infrastructure geared to innovation – including programmes and initiatives like the Lloyd’s Product Launchpad to pilot novel covers with lead syndicates before scaling. It’s a proven path for InsurTechs turning new data or risk models into capacity-backed products.

How Costero makes your coverholder approval easier and faster

To become a Lloyd’s coverholder, you need many elements in place. You need to work closely with a sponsoring Lloyd’s-registered broker (such as Costero) and a Lloyd’s managing agent. You need a clear business plan, robust systems, compliant money handling, experienced key staff and the right cover for your own professional indemnity / errors and omissions (E&O). Done well, today’s coverholder application process is far quicker than it used to be – but only if everything is complete and aligned.

This is where our expertise and relationships come in. Costero is a specialist Lloyd’s registered binder broker with a streamlined, hands-on approach for MGAs and InsurTechs worldwide. We help you shape the business plan, align underwriting guidelines, utilise data effectively, identify the right syndicate partners, and then manage the compliance, placement and renewal cycle day-to-day. Our team can typically secure coverholder approval in as little as two months, once the business plan and supporting materials are ready. We’ve built our expertise by placing dozens of delegated contracts, and managing the monthly bordereaux, premium flow and TPA interactions. That means you can stay focused on distribution and underwriting while we keep the machine running smoothly.

Licensing, appetite, capacity, and continuity are key advantages we see successful MGAs capitalise on – and we help you structure for all these from day one.

Take your next step to Lloyd’s coverholder success

Costero have worked on seven new Lloyd’s coverholder applications in the last 12 months so are extremely well versed in the process and what is involved from start to finish.

Discover how our Binders & Programmes team  can help you accelerate to the next level as a Lloyd’s coverholder with our fast-track application process.

To learn more, please get in touch with our expert James Gadbury at Costero Brokers.

Learn why specialist cover is needed to protect industry against property damage from cyber-physical risk – and how Costero Brokers can help.

Cyber incidents are no longer only about stolen data and IT downtime. As more machines, buildings and infrastructure are controlled by software and connected to the internet, a digital intrusion can cause very real-world harm for organisations and industries: damaged equipment, halted production and complex liabilities. In this article, we explain how those risks are evolving, what recent incidents tell us, how cyber and property insurance policies are changing, and how working with Costero Brokers can help you build cover that truly fits the risk.

Hacking into the real world: when a cyber event damages physical assets

All kinds of industrial organisations, including factories, energy facilities, rail and logistics operators increasingly run on connected control systems. That connectivity brings new levels of efficiency – but also new exposure of physical systems to cyber attacks. There are now more than 18 billion connected devices globally, projected to rise to 40 billion by 2030, hugely expanding the number of targets attackers can exploit. (Source: IoT Analytics)

Security data from industrial environments shows increasing cyber-probing and malware activity against systems that manage or support physical processes. Researchers recently recorded attacks being detected against roughly a fifth of industrial computers they monitor worldwide – demonstrating that physical systems, infrastructure and property are attractive targets for cyber criminals. (Source: [Kaspersky)

All of this is happening while many traditional business property insurance policies have added new cyber exclusions or fine-print limitations. Unless you have explicit, written cover for property damage caused by a cyber event, there is a risk of a protection gap.

Warnings from real-world cyber-physical incidents

Over the past decade, the frequency and scale of cyber-physical attacks on industrial infrastructure and operations have increased worryingly:

• Germany, 2014: An industrial steel mill was attacked by cyber criminals. Germany’s federal cyber authority reported that attackers entered via an office network before accessing plant controls, preventing a blast furnace from shutting down properly and causing massive damage. (Source: BBC News)
• Ukraine, 2016: Power grid industrial control systems (ICS) were targeted with specially developed malware. Investigators found that the ‘Crash Override / Industroyer’ malware was built to interfere with protective relays – an approach designed to damaged critical power equipment. (Source: CISA)
• Middle East, 2017: ‘Triton’ malware was used to target safety systems at an unidentified industrial facility, forcing a shutdown to avoid a potential catastrophe. The case proved that attackers were willing to aim at the controls designed to stop fires and explosions at nuclear, oil and gas power plants. (Source: The Guardian)
• Norway, 2019: A ransomware attack disrupted Norsk hydro’s global aluminium operations and cost the company around USD $75 million. The incident provides a clear example of the knock-on costs incurred when highly automated industrial plants are forced into manual operations by a cyber attack. (Source: Computer Weekly)
• USA, 2021: A hacker used remote access software to take control of safety systems at a water treatment plant in Oldsmar, Florida. The cyber intruder briefly changed the chemical dosing set-point to a dangerous level, but fortunately a vigilant operator reversed it in time. This was a near-miss with obvious implications not only for property damage, but also for public safety. (Source: Wired)

How cyber insurance policies are changing – and what you should look for

In recent years, insurance industry supervisors and the London market have pushed insurers to address “silent cyber” – the uncertainty about whether a policy might respond to a cyber-triggered loss. Insurers are encouraged to do this by either clearly covering or clearly excluding cyber causes of loss. That has led many property policies to adopt cyber exclusions or very narrow “write-backs”, unless you purchase explicit cyber-physical property damage cover.

Language around state-backed cyber attacks has also tightened. Lloyd’s now expects robust wording when policies address such events, with clear parameters on what is and isn’t covered. The exact definitions and any carve-backs matter – and can differ by market.

Some organisations are now pairing a traditional cyber policy (for IT-led incidents) with clear, written cover for property damage and business interruption caused by a cyber event. Sometimes that is done by reinstating cover within the property policy via endorsement; in other cases, it’s placed as a dedicated cyber-property damage product or via reinsurance. The right answer depends on your operations, suppliers and tolerance for loss.

Working with an expert in cyber property damage risk

Whether you’re an insurer, broker or business leader, you need a partner who understands both cyber threats and how physical assets are insured – like Costero Brokers. We design fit-for-purpose, broad and competitively priced programmes at Lloyd’s of London and international markets, working closely with leading global reinsurers. We help you map real-world loss scenarios across production lines, utilities, logistics and building systems, and then build wordings and limits that fit that risk profile.

For brokers, we’ll co-create client-ready submissions that align property, cyber and any reinsurance layers so coverage gaps are closed and the claims pathway is clear. For corporate buyers, we can work with your operations, safety and technology teams to reflect the controls you actually have – segmentation, backups, and safety shutdowns – so underwriters can price the true risk.

Introducing Costero’s new cyber property damage insurance solution

Costero’s exclusive cyber property damage solution – developed with leading Lloyd’s of London syndicates – is built to close the protection gap created by modern wordings. It offers:

• Affirmative cover when a malicious cyber event causes physical damage and business interruption – addressing the hole in traditional policies.
• Access to substantial market capacity (USD $250 million+) across primary and excess layers for large or complex risks.
• Multiple deployment options: Reinstate cyber cover within an all-risks property policy via endorsement, place a combined programme spanning “traditional” cyber and cyber-physical damage, or use reinsurance structures if you’re a carrier seeking to offer this cover to your own clients.

We focus where the exposure is most material – in sectors such as manufacturing, energy, power, mining, pharmaceuticals, rail, transportation and logistics – and we tailor wordings to your operations and geographies.

Ready to close the cyber property damage gap?

If you want to protect your clients – or your own organisation – against cyber-physical losses, talk to us. Costero can help you put a specialist cyber property damage programme in place that fits today’s risk, aligns with market developments, and scales with each organisation’s growth.

Whether you’re an insurer, broker, or business decision-maker, now is the time to evaluate new options in cyber-physical property damage cover. Contact Costero’s Cyber, Media and Technology insurance team today to explore how we can help you.

To find out more and discuss your goals, please get in touch with our expert Jonathan Olley at Costero Brokers.

Welcome to Costero Brokers’ quarterly report on the State of the Global Insurance Market for Q3 2025.

As the year continues, economic shifts, geopolitical dynamics, natural catastrophes and technological developments are influencing risks and opportunities for insurers and brokers worldwide. As we navigate an ever-evolving insurance landscape, this report provides a concise overview of key trends and developments shaping the global insurance market today,

The UK and Global Economy

• UK economy: Inflation is easing only slowly; with most rates on hold. UK consumer price inflation (CPI) was 3.8% year-on-year in August, unchanged from July. Services inflation remains sticky. The Bank of England (BoE) held the Bank Rate at 4.0% on 17 September and scaled back the pace of quantitative tightening (gilt sales) for the coming year. For insurance balance sheets, that means “higher-for-longer” discount and reinvestment yields, but no rapid fall in claims inflation. (Sources: UK Office for National Statistics, Bank of England)
• US economy: Disinflation continues, while the Fed trims rates. US CPI rose 2.9% in August (core CPI 3.1%). The Federal Open Market Committee (FOMC) cut the policy rate by 0.25% on 17 September, setting the federal funds target range at 4.00%–4.25%. Policymakers described the move as a risk-management step amid softer labour data. For insurers, the combination of decent carry and slightly easier policy has kept bond market volatility contained. (Sources: US Bureau of Labor Statistics, Federal Reserve)
• Global economy: Growth is steady but risks are two-sided. A recent update from the International Monetary Fund (IMF) put 2025 global GDP growth at ~3.0%, noting tariff uncertainty and geopolitics as the main downside risks. The Organization for Economic Co-operation and Development (OECD) points to resilience for 2025 but warns that the full tariff impact has not yet shown up in data. (Sources: IMF, Reuters)

Insurance Industry Developments

• UK insurance market: S&P Global Ratings says UK carriers are navigating a tougher backdrop shaped by economic uncertainty, regulatory change and ongoing consolidation. In life insurance, demand is stable to rising, supported by a buoyant pension risk transfer pipeline as strong defined-benefit funding and higher gilt yields make deals attractive. Increasing numbers of mergers and acquisitions (M&A) are unlikely to change industry structure in the near term. By contrast, property & casualty (P&C) faces greater pressure: while recent rate rises improved results in some retail lines, abundant capacity and robust competition are pushing commercial pricing down. S&P judges any profitability boost in P&C as temporary with margins likely to come under strain over time. (Source: Reinsurance News)
• Global commercial pricing: Markets are softer overall, with casualty still firmer. Marsh’s Global Insurance Market Index shows global commercial insurance rates fell 4% in Q2 2025, the fourth consecutive quarterly decline. That tone carried into many Q3 placements, particularly for property and financial lines. Large and loss-exposed casualty accounts remained firmer. (Source: Marsh)
• UK regulation: Climate risk supervision is tightening. The Bank of England’s Prudential Regulation Authority (PRA) is consulting on CP10/25, its paper updating expectations on climate-related governance, scenario analysis and management information for banks and insurers. This signals deeper, evidence-based supervision through 2026. (Source: Bank of England/PRA)

Underwriting Performance

• Lloyd’s H1 2025 results: Profit and robust solvency despite higher major losses. Lloyd’s of London reported £32.5bn gross written premium, £4.2bn profit before tax, and a 92.5% combined ratio (CR) for H1, with the underlying CR at 82.1% once major losses are excluded. The market-wide solvency ratio stood at 206%. California wildfire losses in Q1 were the main difference to last year’s unusually low major-loss period. (Source: Lloyd’s)
• US P&C: Combined ratio improved in Q2 after a tough Q1. A report from the American Property Casualty Insurance Association (APCIA) and market analyst Verisk notes that industry results stabilised in Q2 after severe Q1 losses, with secondary perils and private passenger auto severity still key watch-points. (Source: Verisk/APCIA)

Tech, Cyber and AI Developments

• Ransomware remains highly disruptive: A ransomware attack at aviation software supplier Collins Aerospace disrupted airport operations across parts of Europe in late September, highlighting dependent-business-interruption risk for airlines, airports and their partners. The cyber incident resulted in days of check-in system disruption and manual workarounds, although the level of insured loss is still unclear. (Source: Reuters)
• Cyber claims mix: New portfolio data shared by market participants shows that ransomware now accounts for the majority of incurred cyber losses in many books; where losses occur, severities are trending higher even as overall claim counts fluctuate. (Source: Insurance Journal)
• Emerging cyber risks: Supply-chain and vendor attacks are rising fast. Third-party compromises have doubled year-on-year, according to recent reporting, shifting security focus to software bills of materials (SBOMs), multi-factor authentication across vendors, and tighter contract clauses. (Source: Financial Times)
• AI regulation: EU obligations for general-purpose AI are now live. Under the EU AI Act, the first obligations for providers of general-purpose AI (GPAI) models took effect on 2 August 2025 (transparency and copyright-related duties). Models already on the market before that date must comply by August 2027. The UK’s National Cyber Security Centre (NCSC) also published guidance on adapting vulnerability disclosure for AI safeguards. (Sources: Digital Strategy, NCSC)

Reinsurance Market

• Mid-year renewals: Reinsurers see a tilt towards buyers in property-catastrophe. At 1 June and 1 July, multiple brokers reported flat-to-down risk-adjusted rates on property-catastrophe reinsurance, with ample capacity and a measured return of appetite in upper layers. (Sources: Howden Re, Gallagher Re)
• Insurance-linked securities (ILS) and cat bonds: Catastrophe bond issuance set fresh records this year. Artemis now tracks 95 new cat bond/ILS deals so far in 2025, already matching last year’s full-year count – while AM Best sees ILS capacity potentially reaching USD $114bn in 2025. (Sources: Artemis on cat bonds / AM Best)
• Signals from leading reinsurers: Public updates from major reinsurers during Q3 pointed to competitive dynamics at July renewals and selective growth. For example, Munich Re noted price and volume slippage versus 2024 at mid-year but kept its full-year profit target. (Source: Reuters)

Natural Catastrophes

• Global catastrophe losses: In the first half of 2025, natural catastrophe global insured losses reached about USD $80bn, the second-costliest H1 on record, driven largely by US tornados and wildfires. (Source: Reuters)
• US tornados: A mid-September outbreak of severe convective storms (SCS) set new annual tornado records in North Dakota, adding to a year of damaging wind and hail across the US Plains and Midwest. (Source: The Guardian)
• Atlantic hurricanes: As of late September, the North Atlantic season has produced 7 named storms, 2 hurricanes, and 2 major hurricanes, with Accumulated Cyclone Energy (ACE) about 36% below the long-term norm. The recent system of note is Hurricane Gabrielle, intensifying in the open Atlantic and heading toward the Azores. (Source: NOAA)
• Canada wildfires: The Canadian regions of Manitoba and Saskatchewan have been ravaged by a series of over 700 wildfires since May, causing insured losses of around CAD $300 million. (Source: Insurance Bureau of Canada)

Geopolitical Risks

• Shipping war-risk: After deadly attacks in July, war-risk premiums for Red Sea transits more than doubled, with some quotes around 0.7%–1.0% of hull value. In the Persian Gulf, Strait of Hormuz pricing moved to around 0.5% for some voyages during June’s flare-up. These costs have filtered through marine hull, cargo and logistics covers via altered routing, delays and surcharges.(Sources: Reuters on Red Sea / Hormuz)
• Ukraine conflict: Refinery strikes have tightened fuel markets. Ukraine stepped up long-range drone strikes on Russian refineries in September, disrupting around 1 million barrels per day of refining capacity at points and lifting diesel margins. Knock-on effects include higher bunker and diesel cracks and shifting cargo routes. (Sources: Financial Times, Reuters)
• Tariffs and trade: The International Monetary Fund ( IMF flagged tariff risks in July, and recent monitoring shows US effective tariff rates are elevated versus prior years. For trade credit, cargo and political risk underwriters, that means continued scrutiny of counterparties and routes. (Source: IMF)

Looking ahead..

As we enter the final months of 2025, Costero Brokers remains committed to supporting our clients and partners in navigating their challenges. Our expertise and insights are here to help you make informed decisions and seize opportunities in a rapidly changing market.

For more detailed analysis and resources, visit our website or contact us.

Disclaimer:

This market report was developed for reference only, and any prospective statements about possible future events or performance are based on developing factors regarding economic and business activity relevant to financial and insurance markets. Such prospective statements involve risk as actual results may differ materially from those expressed or implied due to future changes in relevant factors. We are not responsible for the accuracy of the third-party information cited herein and undertake no obligation to update any such data or prospective statements, nor do we in any way intend to provide legal, financial, or insurance advice regarding any existing or future litigation or other matter discussed or projected herein. Please seek the advice of your own professional advisors or counsel regarding your specific circumstances.

Learn why working with an independent Lloyd’s broker enables agility, innovation and service advantages for insurers accessing the London market.

London’s broker landscape is changing fast. A wave of consolidation has seen many smaller and mid-sized Lloyd’s brokers folded into a handful of global groups. In a market that thrives on speed, relationships and deep expertise, size isn’t everything. As an independent Lloyd’s broker, Costero can move faster, stay closer to you, and tailor solutions without the constraints that can come with public-company or private-equity ownership.

This article explores what’s happening, why it matters to insurers and brokers worldwide, and how working with an independent like Costero gives you a real edge.

The role and value of Lloyd’s brokers

Lloyd’s of London remains the world’s leading marketplace for specialist risk – and Lloyd’s-registered brokers provide its vital interface to the wider insurance industry. The majority of business at Lloyd’s is placed through specialist brokers who match complex client needs with the right underwriting expertise across multiple syndicates—often building subscription placements to deliver the optimal blend of capacity, price and terms. Working with a registered Lloyd’s broker, you gain direct access to a uniquely deep pool of specialist underwriters and products designed for complex or bespoke risks.

Consolidation across Lloyd’s brokers is on the rise

The London market has witnessed a long-term reduction in the number of FCA-regulated brokers since 2006, underscoring how consolidation has reshaped the landscape. (Source: Insurance Times)

Mergers and acquisitions (M&A) among Lloyd’s brokers have increased in recent years and, even with a slower 2025, the continuing trend is clear. Corporate advisers report that UK insurance-distribution deal activity in H1 2025 was 35% lower than the same period in 2024 – still dominated by large, market-shaping transactions. (Source: MarshBerry)

The drawbacks of broker consolidation

Large groups can undoubtedly bring resources and global reach. But these shifts of broker ownership and priorities can alter appetites, decision-making and relationships at short notice—especially for clients that rely on long-running programmes or facilities.

The potential drawbacks of large brokerage groups include:

• Shareholder primacy vs client primacy: Listed firms and PE-backed platforms must prioritise investor returns. That can shape service models, incentives and the tolerance for non-standard placements—precisely where many delegated authority and niche programmes live.
• Less agility, more bureaucracy: Consolidation often means layers of management, standardised processes and siloed teams – factors that can slow decisions or dampen creativity for cross-class or unusual structures. When your programme needs a swift endorsement or a claims exception, friction shows up quickly.
• Potential conflicts and “big-account” constraints: When a few groups handle many of the world’s largest buyers and carriers, genuine separation of interests becomes harder in practice; internal guardrails can limit who will place what, and where.

If you run delegated authority and multi-year programme business, you may recognise these frictions: slower responses, changing appetites, and less personal accountability. Workflows handling settlements and claims can stall when operations are fragmented.

The advantages of choosing an independent Lloyd’s broker

Working with an independent Lloyd’s broker like Costero can bring major benefits in many of these areas.

• A personal approach: When you get in touch with us, you deal directly with our expert brokers – the people actually placing your risk. We keep decisions close to our clients and the market, not buried in management layers.
• Responsive service. Speed matters – to bind capacity, issue endorsements and get claims paid. We obsess over the operational details – providing bordereaux reports on time, chasing payments for clients, ensuring notifications are clean – so problems don’t linger. In too many big-broker environments, these basics get lost between teams; we make them a priority across our business.
• Expertise and experience: We’ve carefully hand-picked our team of specialists across jurisdictions and classes – avoiding a “cookie-cutter” approach. Broad contacts, tailored structuring styles, one collaborative ethos. That diversity lets us design placements that reflect your risk reality.
• Agility and flexibility: Because we’re not part of a listed conglomerate or a private equity (PE) roll-up, we can move quickly and build around opportunities, rather than forcing them into a template. If a requirement crosses classes, or sits slightly outside the usual box, we can shape a bespoke solution around it.
• Proactive teamwork: Our culture is deliberately non-siloed. We work closely together, share leads, and combine skills—think cyber with marine, property with financial lines—to solve problems creatively. That cross-pollination is hard to replicate in segmented mega-broker structures.
• Innovative solutions: Independence gives us permission to experiment—new MGA partnerships, bespoke programme architecture, alternative capital—tapping the full Lloyd’s market (and beyond) to craft solutions that suit you, not our org chart. And we do it without a corporate “man-manager” hierarchy – all our key people are expert brokers.

In short, we mix old-school values of trust, respect and integrity with a forward-thinking approach to managing risk. It’s not just our goal –  it’s how we work day to day.

Combine the power of Lloyd’s with the advantages of independence

London is still the best home for complex risk. Despite consolidation among brokers and carriers, choice remains if you know where to look. Competition in the market is evolving, while capacity is reshaping. In this environment, broker independence is an advantage: giving you faster answers, fewer barriers, and intelligent solutions tailored to your portfolio, geographies and growth plans.

Working with Costero means you get a Lloyd’s broker partner who will advocate for your required capacity and move at the pace you need. You’re served by a team that values relationships and delivery over internal politics – with a culture that rewards doing the right thing quickly for our clients. If you’re a broker seeking a nimble London partner, or a carrier looking for a proactive wholesale Lloyd’s broker to grow delegated authority with, discover the advantages we offer.

Talk to Costero about how our independence can work for you—whether that’s building a new binding authority, refreshing your programme, or exploring innovative options for hard-to-place risks. Let’s combine the best of Lloyd’s with the best of independent broking, and deliver results for your clients and your business.

To learn more, please get in touch with us at Costero Brokers.

Explore how technologies like blockchain, cryptocurrency, DeFi, smart contracts, NFTs, AI and Web3 are transforming the business landscape – and how the right cyber insurance can keep organisations trading when things go wrong.

Across every business sector, the way organisations run is shifting onto new kinds of digital infrastructure. Payments that settle on blockchains, customer memberships issued as digital tokens, AI copilots helping teams code, market and serve – and data moving everywhere on cloud platforms. In short, each organisation increasingly relies on digital infrastructure it does not own or fully control. That creates real opportunities — and new points of failure. Here’s how the landscape is evolving, where risks are emerging, and how working with a specialist like Costero Brokers can help you build a tailor-made cyber insurance programme that fits how organisations operate today.

The business landscape is changing fast

Consider the next generation of digital business infrastructure. Customers tap their phone or wristwatch to pay. Business teams collaborate in the cloud. Marketing leans on AI to personalise campaigns. Finance teams explore tokenised assets or crypto rails for faster settlement. This isn’t tomorrow’s world; it’s happening now.

This new infrastructure can create real commercial advantage:

• Speed and automation with smart contracts: Blockchain-based “smart contracts” can automate routine business steps (say, paying a supplier once goods are confirmed), helping cash flow and reducing manual error. For many businesses, this means faster settlement and fewer reconciliations. (Source: IBM)
• Building trust with tokenisation: Tokenised assets and Web3-style memberships can enable 24/7 commerce and new customer engagement models. Global institutions and policymakers are actively exploring tokenisation in payments and capital markets, signalling a durable shift in how value moves. (Source: McKinsey)
• Productivity at scale with AI: For most organisations, AI has rapidly moved from a business experiment to an indispensable enterprise tool. From triaging service tickets to drafting content, AI is now embedded in day-to-day workflows. (Source: UK National Cyber Security Centre)

For most organisations, these benefits are becoming too significant to ignore. The question isn’t if or when businesses will use this next-generation digital infrastructure – it’s how to adopt it safely.

With great digital power comes new risks

While these benefits are considerable, organisations placing reliance on this new digital infrastructure will face new risks and challenges:

• Single points of failure in the tech supply chain: When a critical third-party tool breaks, the knock-on effects can be huge. In July 2024, a faulty update to the widely used CrowdStrike security platform triggered crashes on more than 8 million Windows systems, grounding flights and disrupting banks worldwide. This wasn’t a malicious hack – it was dependency failure at massive scale. (Source: The Verge)
• Losses in crypto/Web3 ecosystems: Poorly designed code, compromised keys or attacks on cross-network bridges and external data oracles can drain funds rapidly from crypto systems. During the first half of 2025, a total of over USD $2 billion worth of cryptocurrency was stolen worldwide – mostly in one mega-heist but also numerous smaller incidents. This underlines that the risk is real for any organisation utilising blockchain and digital assets. (Source: Chainalysis)
• AI-specific exposures: AI can leak sensitive data, enable convincing phishing scams, or infringe IP if not governed well. That’s why governments are publishing secure-by-design guidance and, in the EU, introducing the AI Act with phased compliance. Organisations must now treat AI as a core business capability that needs risk controls – not a side project. (Source: EU AI Act)
• Rising governance expectations. For organisations that operate in or serve the EU financial sector, the new Digital Operational Resilience Act (DORA) raises the bar on incident reporting, vendor risk and operational resilience. Even outside financial services, board-level cyber accountability is becoming the norm. (Source: EIOPA)

The pattern is clear: business value creation increasingly relies on digital infrastructure, code, data and third party systems. Outages and exploits now translate directly into interrupted revenue, regulatory exposure and brand damage.

How cyber insurance is responding to the changing landscape

The right cyber insurance can be a powerful shock absorber when digital infrastructure stumbles. The market response to a fast-evolving business world has focused on three practical areas:

• Explicit protection for key dependencies: Organisations need to increasingly look for cyber insurance policy wording that responds even when internal systems still work – but a critical third-party (such as cloud, payment gateway, security tool or content delivery network) fails and the business can’t operate. Some markets now offer parametric cover — a transparent, trigger-based approach that pays when, say, a named cloud service suffers defined downtime.
• Clearer treatment of large-scale and state-linked cyber events: Following market guidance, many policies now include model clauses that clarify how state-backed cyber attacks or truly systemic events are handled. Understanding these wordings — and what they mean for your balance sheet — is essential.
• Readiness and response built in: Beyond indemnity, strong cyber programmes should include access to forensics, legal counsel and crisis communications, plus readiness and response preparation. That shortens downtime and helps you meet regulatory timelines in the event of an outage.

How a cyber insurance specialist helps you turn risk into resilience

Costero’s Cyber, Media & Technology (CMT) team is focused on exactly these next-generation exposures. From venture-backed Web3 projects to multinational retailers and financial institutions, we design tailor-made cyber programmes that match how each organisation operates — and where dependencies sit. Cover is placed at Lloyd’s of London, across international markets, and with leading global reinsurers.

We translate tech into business impact. Together we map “where revenue meets risk”: which cloud services, payment rails, security agents, AI/LLM platforms and blockchain providers your operations rely on – and what happens to turnover if each goes down. The key question “What would stop the business trading?” anchors the right limits, sub-limits and deductibles.

We tailor coverage to the real world. Programmes can include:

• Third-party technology failure and dependent-business-interruption cover (including cloud/CDN/payment outages).
• Crypto/Web3 extensions where insurable (for example, theft following private-key compromise, social engineering, post-incident costs).
• AI-related media/IP and privacy cover, plus regulatory defence and investigation costs aligned to regimes like the EU AI Act and DORA.

Find cyber cover for digital business innovation

Whether you’re a business leader, or an insurer or broker with corporate clients, it’s time to explore the latest cyber insurance solutions for exploiting new digital business infrastructure with confidence.

To find out more and discuss your goals, please get in touch with our expert Jonathan Olley at Costero Brokers.

Explore the challenges faced by MGAs and coverholders in protecting commercial property against hurricane, flood and hail risks – and how Costero’s In-House Property Binder and Deductible Buy-Down solutions can help.

If you’re an MGA, insurer, broker or coverholder serving commercial clients along the U.S. Atlantic or Gulf coasts, you know how hard it’s become to secure the right property cover for your clients, at the right terms. Billion-dollar natural disasters are more frequent; deductibles keep creeping up; and properties in different states can have wildly different risk profiles.

In this article, we outline the exposures you’re wrestling with, highlight recent events underscoring the risk, and explain how working with an expert partner like Costero Brokers can help you respond quickly and confidently for your clients – with our In-House Property Binder and Deductible Buy-Down solutions.

The realities of extreme weather exposure for U.S. coastal states

The sheer concentration of people and property along the U.S. Atlantic and Gulf shoreline makes coastal losses uniquely impactful. U.S. coastal counties are home to roughly 40% of the nation’s population, despite representing less than 10% of contiguous U.S. land area. (Source: U.S. National Oceanic and Atmospheric Administration – NOAA) That concentration amplifies the consequences when wind, hail and flood strike.

Across Louisiana, Mississippi, Alabama, Georgia, Florida, Pennsylvania, Texas, New Jersey and New York, the peril mix varies: Gulf states may face more hurricanes and tropical remnants, while Atlantic states face ocean storm surges and nor’easters. And all of these states can suffer disastrous floods, and severe convective storms that drive costly hail and straight-line wind claims.

Recent events underline the scale of extreme weather risk

NOAA’s Billion-Dollar Disasters database shows how frequently these hazards now translate into multi-billion-dollar economic shocks. In 2024, the U.S. suffered 27 separate billion-dollar weather and climate events – the second-highest count on record.

The July 2025 Central Texas floods were a stark reminder that catastrophic events in coastal states are not confined to the immediate coastline. As of late July, media and official tallies reported at least 135 fatalities across multiple counties, with damage to tens of thousands of homes and businesses. The human impact was devastating; the economic impact will echo for years. (Source: Forbes)

From an insurance perspective, several early assessments point to a large gap between total economic losses and insured losses. Analytics firm Cotality estimated about $1.1 billion in damage to residential buildings and roughly $135 million in potential claims to the National Flood Insurance Program (NFIP). Reinsurer Aon highlighted that low flood insurance take-up in the hard-hit rural areas would likely limit industry-wide insured losses, even as total economic losses run into the billions. Other sources pegged overall damage (economic, not insured) in the $18–22 billion range. The signal is clear: extreme weather risks such as floods remain dramatically under-insured, and percentage deductibles are leaving many policyholders to carry significant costs on catastrophe claims.(Sources: Insurance Journal, Reinsurance News)

Finding the right property cover for coastal states is challenging

If your clients own commercial property in U.S. coastal states, risk and insurance complexity increase:

• High catastrophe deductibles: Many coastal policies carry percentage deductibles (hurricane, named storm or wind/hail) that can run to several points of Total insurable value (TIV) – materially higher than standard all-perils deductibles. That’s a rational market response to volatility, but it also leaves insureds with significant retained loss on exactly the claims they’re most likely to have.
• Coverage patchiness – especially for flood: The Texas floods once again showed how low insurance take-up in many communities leaves a protection gap that becomes a liquidity crisis after an extreme weather event. Even where NFIP or private-market flood is purchased, deductibles can still be steep.
• Timing and execution risk: In a fast-moving market, you need speed to bind opportunities and retain accounts. Those that can assess and respond quickly win the business; those that can’t, don’t.

Advantages of working with an extreme weather expert in the London market

Working with a Lloyd’s of London market specialist for extreme weather coverage gives you breadth of market and depth of expertise in one place. In 2025, reinsurer appetite has improved, cat-bond and alternative capital issuance are high, and capacity is broadly competitive – yet outcomes still vary by risk quality and how the programme is presented. A partner who understands both U.S. coastal realities and London capacity can shape market interest, structure solutions around hotspots, and accelerate turnaround on quotes.

That’s why working with Costero Brokers makes such a difference to so many leading U.S. MGAs, insurers, brokers and coverholders. Our coastal property team places business directly with Lloyd’s of London syndicates, provides rapid (typically under 24-hour) turnaround on quotes, and brings capacity across U.S. coastal states – with a pragmatic willingness to look at commercial risks within typical coastal proximities. We work through U.S. licensed wholesalers and retailers and focus on solutions that are clear, quick and service-led.

Swift certainty with Costero’s In-House Property Binder

Our In-House Property Binder solution gives you a streamlined route to all-risks and wind-only solutions supported 100% at Lloyd’s of London. In a market where timing matters, having an in-house facility helps you quote and bind quickly, create consistency across a schedule, and access meaningful coastal capacity without having to assemble a new line-up for every placement. For your clients, that can translate into fewer friction points, clearer terms, and a smoother experience.

Because the binder is operated by a team that lives and breathes coastal property, you also get real-world underwriting dialogue: we understand construction class, ROOF age, proximity to water, secondary protections and the other drivers that move the needle with capacity providers. And speedy turnaround of quotes is central to the design of our solution.

Making deductibles manageable with our Deductible Buy-Down solution

Rising catastrophe deductibles will naturally be a pain point for many of your clients. A Deductible Buy-Down lets you reduce that retained loss for defined perils, improving liquidity right when it’s needed most.

Costero’s Deductible Buy-Down facility has operated for years in the U.S. market, supporting buy-downs for wind, hail, flood, earthquake and more. It’s a straightforward indemnity solution that does exactly what it says on the tin – when the peril hits and the base policy responds, the buy-down steps in to shrink the client’s out-of-pocket costs.

Our Deductible Buy-Down solution brings major benefits for your clients and your relationship with them:

• Protect client EBITDA and cash flow: A lower deductible for your client’s extreme weather claim can turn a balance-sheet shock into a manageable hit – especially important for businesses in hurricane belts or hail corridors.
• Support account retention: Giving clients a choice on deductible structure helps you keep the account when base-market terms harden.
• Complement base cover: You can pair a competitively priced base policy (with a higher cat deductible) and then use the buy-down to restore affordability and resilience.
• Capacity in all U.S. States (including Hawaii), from single location to multi state schedules, and most occupancies are considered.

We’re ready to help meet your extreme weather cover challenges

Tell us about your client’s property and we’ll turnaround a quote quickly, working with your preferred wholesale partners. For complex schedules, we can help structure a clear, cohesive placement strategy and layer in a Deductible Buy-Down where it adds the most value. Our aim is simple: strong cover, fast decisions, no drama.

If you’re placing or renewing coastal property this season – particularly along the Gulf and Atlantic seaboard – let’s talk. Reach out to discuss how Costero’s In-House Property Binder and Deductible Buy-Down can help you deliver stronger outcomes for your clients in coastal states.

To learn more about how we can help you navigate the challenges of extreme weather cover, get in touch with our expert, Rob Withers at Costero Brokers.

In an increasingly volatile world, organisations with personnel operating in geopolitical hotspots face unprecedented risks. From armed conflicts and political unrest to kidnappings and terrorist threats, the safety of overseas staff is a paramount concern. Crisis management insurance offers a vital safety net, ensuring that organisations can respond effectively to emergencies and protect their most valuable assets – their people. Costero Brokers specialises in providing tailored crisis management insurance solutions, offering expertise and support to navigate these complex challenges.

Navigating the risks of global operations in threat zones

Deploying personnel to regions fraught with instability presents multifaceted challenges for many kinds of organisations, such as:

• Multinational corporations (MNCs): Large companies with global operations often send staff to manage projects, oversee supply chains, or set up new offices in regions that may experience instability.
• Manufacturing and construction Firms: Companies producing goods or involved in building infrastructure, such as roads, bridges, or factories, often send project managers, engineers, and technical experts to regions that might be experiencing political or social unrest.
• Energy and mining companies: Firms in the oil, gas, and mining sectors frequently have operations in remote or geopolitically sensitive areas, requiring them to station personnel on-site.
• Media organisations: News agencies and media outlets send journalists, photographers, and support staff to cover stories in conflict zones and areas of political unrest.
• Non-governmental organisations (NGOs) and non-profits: Humanitarian and development NGOs often operate in conflict zones to provide aid, education, and infrastructure support.
• Healthcare organisations: International healthcare providers and medical charities may send doctors, nurses, and support staff to provide care in crisis zones.

Facing a global landscape of evolving risks

All these kinds of organisations often face risks from operating in areas where the geopolitical situation is unpredictable. Recent events underscore the severity of these risks (source: S&P Global):

• Middle East conflicts: The escalation of hostilities in certain regions and the broader Middle East has disrupted many international organisations’ operations and endangered personnel.
• Russia-Ukraine war: The ongoing conflict has not only affected the immediate area but has also had ripple effects on global security and economic stability.
• Kidnapping incidents: Recent years have seen a notable increase in kidnapping cases targeting foreign workers and executives in various regions, including parts of Africa and Latin America.

Evolving regional risk situations like these highlight the critical need for organisations to adopt comprehensive crisis management strategies – to safeguard their personnel working overseas and maintain operational continuity. A key element of such a strategy is specialist crisis management insurance.

Let’s consider 7 ways crisis management insurance can help protect an organisation’s overseas personnel:

1. Access to crisis management experts

Having immediate access to crisis management professionals can be invaluable for an organisation’s leaders and overseas employees. Insurance coverage can provide:

• 24/7 support: Round-the-clock assistance from crisis response teams.
• Strategic guidance: Expert advice on handling complex situations.
• Training and preparedness: Resources to educate staff on risk mitigation.

These services empower organisations to prepare against and respond effectively to crises, safeguarding personnel and assets.

2. Protection against political violence and terrorism

Operations in unstable regions are susceptible to political violence and terrorist acts. Insurance coverage can include:

• Property damage: Compensation for damages resulting from riots, strikes, or terrorist attacks.
• Business interruption: Coverage for losses due to operational disruptions.
• Security assessments: Risk evaluations to inform safety protocols.

This protection helps organisations improve safety, mitigate financial losses and resume operations promptly.

3. Kidnap and ransom coverage

In many high-risk regions, the threat of kidnapping is an everyday reality for overseas workers. Crisis management insurance for kidnap and ransom incidents can provide organisations with:

• Expert response: Access to seasoned crisis response consultants who guide organisations through negotiations and recovery efforts.
• Financial protection: Coverage for ransom payments, extortion demands, and associated costs.
• Repatriation services: Arrangements for the safe return of affected individuals.

This coverage ensures that organisations can respond swiftly and effectively to kidnap incidents, minimising harm and disruption.

4. Coverage for active assailant incidents

The occurrence or threat of active assailant incidents (involving use of firearms, knives or other weapons) necessitates specific coverage, including:

• Medical expenses: Compensation for injuries sustained by employees.
• Psychological support: Access to counselling services for affected individuals.
• Liability protection: Coverage for legal liabilities arising from such incidents.

This comprehensive cover addresses both the immediate and long-term impacts of such traumatic events.

5. Support for denial of access and loss of attraction

Crises can lead to restricted access to facilities or deter clients and partners. Insurance solutions can offer:

• Financial compensation: Coverage for losses due to decreased footfall or access restrictions.
• Operational support: Assistance in maintaining business continuity during disruptions.

This support helps organisations navigate the logistical and economic challenges posed by crises.

6. Evacuation and repatriation assistance

In the event of sudden political upheaval war or natural disasters, timely evacuation is crucial. Insurance solutions can offer:

• Emergency evacuation: Coordination and funding for the rapid removal of personnel from danger zones.
• Travel arrangements: Logistical support for transportation and accommodation during crises.
• Medical support: Access to medical care and evacuation if necessary.

These services are vital for ensuring the safety and well-being of affected staff during regional emergencies.

7. Tailored solutions for evolving risk profiles

Recognising that each organisation has unique needs and faces ever-changing risks, flexible and dynamic crisis management insurance can provide:

• Customised policies: Coverage tailored to specific operational risks and geographic exposures.
• Flexible terms: Adaptable coverage options to suit various organisational structures.
• Scalable solutions: Policies that grow with the organisation’s expanding global footprint.

This adaptability ensures comprehensive protection aligned with organisational objectives.

Partnering with a crisis management expert for comprehensive protection

Navigating the complexities of global operations and regional risks requires a trusted partner. Costero Brokers brings extensive experience in crisis management insurance, offering:

• Expertise: In-depth knowledge of global risks and insurance solutions.
• Customisation: Tailored policies that align with your organisation’s specific needs.
• Support: Dedicated assistance throughout the policy lifecycle, from risk assessment to claims management.
• Agility: Through our terrorism portal, you can quote and bind a terrorism risk within around 60 seconds.

We work closely with specialist syndicates at Lloyd’s of London, and leading global reinsurers, to create bespoke insurance solutions for each client.

Whether you’re an insurer, broker, MGA or directly responsible for protecting an organisation and its overseas personnel, now is the time to take proactive measures. With specialist insurance solutions from Costero Brokers, organisations can enhance their resilience and ensure the safety of their personnel in an unpredictable world.

Talk to our Crisis Management team today about insurance protection for organisations and overseas personnel in global high-risk zones. To find out more, get in touch with our expert, Freddie Tyler at Costero Brokers.

In 2025, geopolitical dynamics, economic shifts, and technological advancements are influencing risks and opportunities for insurers and brokers worldwide. As we navigate an ever-evolving insurance landscape, this report provides a concise overview of key trends and developments shaping the global insurance market today.

The UK and Global Economy

• UK economy: UK inflation eased slightly to 3.4% in May, down from 3.5% in April, driven by lower transport costs but offset by sharp food price increases – including a 17.7% rise in chocolate prices due to poor West African harvests. The Bank of England held interest rates at 4.25%, citing ongoing inflationary pressures and global uncertainty. For insurers, this signals continued pricing strain across long-tail and property lines, as persistent inflation affects claims severity and reserving assumptions, while delaying monetary easing that could improve investment returns. Inflationary resilience remains a critical variable for underwriting strategy in H2 2025. (Sources: The Guardian, BBC News)
• U.S. economy: During June, the U.S. Federal Reserve held interest rates at 4.25–4.50%, cautioning that although two rate cuts are still anticipated by year-end, the pace of future easing – especially in 2026–27 – will be “slower” due to ongoing inflation pressures tied to trade and geopolitical tensions, warning of persistent inflation potentially running near 3 % next year. For insurers, this signals prolonged pressure on investment income and discount rates used in reserving models. Meanwhile, the Fed’s tempered tone may lead to more stable yield environments, requiring recalibrated ALM strategies and careful product pricing as monetary conditions evolve through H2 2025 and beyond. (Source: Reuters)
• Global economy: The International Monetary Fund (IMF) April 2025 World Economic Outlook projects a global growth slowdown to 2.8% in 2025 (down from 3.3% in January), with advanced economies expanding just 1.4% and the U.S. at 1.8%, amid escalating trade tensions and policy uncertainty. Headline inflation is forecast to ease gradually to around 4.3%, but multi-year high input costs and unresolved global trade disruptions threaten cost inflation. For insurers, this means claims inflation may remain elevated and investment returns subdued, necessitating tighter reserving and premium recalibration strategies for product lines sensitive to economic and pricing volatility. (Source: IMF)

Insurance Industry Developments

• Premiums and capacity: Global commercial property insurance premiums fell 6% in Q1 2025, accelerating from a 3% drop in Q4 2024, as ample market capacity and reduced reinsurance costs fuelled pricing relief. The UK saw a mirrored 6% decline, while the US and Pacific recorded steeper 9% reductions. This trend is attributed to aggressive competition and attractive reinsurance pricing, with insurers offering enhanced terms and lower deductibles. Despite softer pricing, underwriting discipline persists – poor-quality or high-loss accounts still face less favourable renewal terms. Insurers and brokers should prepare for continued market softening, particularly if reinsurance pricing remains stable. (Source: Artemis)
• Specialty lines: Directors & Officers (D&O) and professional indemnity premiums continue to see marginal increases, driven by legal and regulatory pressures across the UK and US. Intensifying competition and capacity influx – particularly in the US – have driven rates lower, though underwriters are adopting more sustainable pricing strategies across regions . London remains a preferred region, offering broader coverage and flexibility on sub-limits and entity investigation endorsements. In the UK and Europe, rising claim frequency – especially in insolvency and employment disputes – and increased legal and regulatory scrutiny are pressuring margins, prompting market stabilisation with fewer rate reductions. Insurers are responding with long-term agreements and enhanced policy features, signalling a shift toward disciplined growth and coverage depth. (Source: Gallagher Specialty)
• Regulatory developments: The UK’s Prudential Regulation Authority (PRA) issued new guidelines in April focusing on climate-related disclosures, calling on insurers to enhance transparency regarding their climate risk exposure and mitigation strategies. The PRA warned that banks and insurers have significant “gaps” in how they assess and manage both physical and transition climate risks, instructing firms to conduct internal reviews – with a follow-up compliance review in six months. (Source: Global Regulation Tomorrow)

Underwriting Performance

• London market: Lloyd’s of London is experiencing continued strong performance, according to an April 2025 report from the Lloyd’s Market Association (LMA) and ICMR. Gross written premiums in 2024 reached GBP £55.5 billion, with underwriting profit across nearly all syndicates and a pre-tax profit of £9.6 billion. Major claims – such as two U.S. hurricanes – totalled 7.8% of premiums, still below long-term averages. The report also outlines strategic priorities for 2025, including digitisation, regulatory engagement, technical expertise, and cultural transformation across the Lloyd’s market (Source: Lloyd’s Market Association)
• London outlook: In its Q2 2025 Market Message, Lloyd’s of London stressed a strategic shift towards “risk awareness, not risk aversion”, highlighting the need for disciplined underwriting amid fragile market conditions, reflected by a subdued Q1 risk-adjusted rate change of -3.3%. Lloyd’s senior leadership urged realistic syndicate strategies, enhanced scrutiny on claims performance, and proactive capital management to address macroeconomic uncertainties, signalling a decisive move towards profitability and operational efficiency. (Source: Reinsurance News)

Tech, Cyber and AI Developments

• Cyber attacks target insurers: Cyber incidents escalated notably in Q2 2025, affecting the insurance industry directly. In June, U.S. insurer Aflac revealed that a “sophisticated cybercrime group” had infiltrated its network via social engineering tactics, potentially compromising sensitive customer information – including social security numbers, health, and claims data. However, no ransomware was detected and core services remained operational. The insurer swiftly engaged third-party cybersecurity experts and contained the breach within hours. This incident is part of a broader wave of attacks targeting the insurance sector, with indications that the “Scattered Spider” hacker gang may be responsible. Insurers should reinforce employee training and incident response protocols as exposure risks escalate. (Source: Reuters)
• AI legislation: The European Union’s new AI Act has now entered into force, with rules for generative Artificial Intelligence applying from August. While the EU introduces a formal regulatory framework, the UK favours a flexible, principles-based model, empowering sectoral regulators like the FCA and PRA to oversee AI deployment in financial services – including insurance – with no new central AI authority required . With 75% of firms already using AI, including for credit risk and capital management, the UK Treasury and regulators are conducting ‘Calls for Evidence’ and market reviews to ensure governance remains robust. This approach balances innovation with oversight and enables insurers to adopt AI solutions while maintaining ethical and operational controls. (Source: KPMG)

Reinsurance Market

• Record cat bond quarter: Catastrophe bond issuance is projected to exceed USD $10 billion In Q2 2025, marking the first-ever quarter to hit this milestone, as demand from cedants and investors surges. This underscores growing reliance on insurance-linked securities (ILS) for alternative reinsurance capital and reflects investor appetite for diversified, yield-enhanced vehicles in a low-corruption insurance environment. Reinsurers and brokers should anticipate continued high ILS activity into H2 2025. (Source: Artemis)
• Buyer-friendly renewals: Annual renewals in April – spanning the US, Japan, South Korea, India, and beyond – were highly competitive and buyer-friendly, with ample capacity and price reductions seen in loss-free P&C and cat accounts. This trend reflects continued strong reinsurer appetite and disciplined underwriting following a benign catastrophe season. (Source: Insurance Journal)

Natural Catastrophes

• U.S. severe storms: A series of severe convective storms (SCS) and tornadoes across the central and eastern U.S. in May – most notably in St. Louis, Missouri and Laurel County, Kentucky – are estimated to have caused insured losses of up to $7 billion, ranking among the costliest SCS events in U.S. history. So far in 2025, SCS losses for U.S. insurers have surpassed $20 billion. (Source: MST)
• Global catastrophe losses: According to an April 2025 report from Swiss Re, global insured losses from natural catastrophes reached USD $137 billion in 2024, and are projected to grow to approximately $145 billion in 2025, aligned with a long-term annual growth trend of 5–7%. Among the disasters contributing most to the accumulation of losses were hurricanes Helene and Milton, severe convective storms (SCS) in the US, large-scale urban floods around the world and the highest ever recorded natural catastrophe insured losses in Canada. (Source: Swiss Re)

Geopolitical Risks

• Gulf marine premiums jump: Geopolitical volatility remains elevated in Q2 2025, notably due to continuing tensions around conflicts in Ukraine and the Middle East. Marine insurance premiums for hull and machinery cover on vessels transiting the Strait of Hormuz jumped by over 60% in June, rising from around 0.125% to approximately 0.2% of vessel value – an increase strongly linked to ongoing hostilities between Israel and Iran. (Source: Insurance Business)
• Tariff tensions: The complex situation around U.S. trade tariffs continues to evolve. In May, a three-judge panel of the U.S. Court of International Trade ruled that tariffs introduced via the 2025 International Emergency Economic Powers Act (IEEPA) were unlawful. While the decision is under appeal and a temporary stay allows tariffs to remain, insurers exposed to marine cargo and trade risks should monitor renewed uncertainty in trade flows, supply chain stability, and refinancing of trade credit coverage. (Source: The Guardian)

Looking ahead..

As we progress further through 2025, Costero Brokers remains committed to supporting our clients and partners in navigating their challenges. Our expertise and insights are here to help you make informed decisions and seize opportunities in a rapidly changing market.

For more detailed analysis and resources, visit our website or contact us.

Disclaimer:

This market report was developed for reference only, and any prospective statements about possible future events or performance are based on developing factors regarding economic and business activity relevant to financial and insurance markets. Such prospective statements involve risk as actual results may differ materially from those expressed or implied due to future changes in relevant factors. We are not responsible for the accuracy of the third-party information cited herein and undertake no obligation to update any such data or prospective statements, nor do we in any way intend to provide legal, financial, or insurance advice regarding any existing or future litigation or other matter discussed or projected herein. Please seek the advice of your own professional advisors or counsel regarding your specific circumstances.

Learn why media liability insurance is now vital for all kinds of public-facing organisations, including retailers, brands and non-profits.

In an age where every organisation has become its own publisher, the risks traditionally associated with media companies are now a pressing concern for non-media businesses too. Retailers, brands, non-profits and other organisations are increasingly exposed to media liability risks through their social channels, websites, media partnerships and marketing content. This article explores the evolving media risk landscape and how partnering with a specialist like Costero Brokers can ensure these organisations are adequately protected with bespoke insurance solutions.

The expanding media risk landscape for non-media organisations

Public-facing organisations such as retailers, brands, and non-profits are embracing content creation to engage audiences, raise awareness, build loyalty, fund-raise or drive sales. From publishing newsletters and launching marketing campaigns to engaging with followers on social media or collaborating with influencers, these organisations are now actively involved in content dissemination. While this offers new opportunities, it also opens the door to a growing array of risks.

Some of the most common media liability exposures include:

• Defamation and libel: A social post, advert, or article could inadvertently harm someone’s reputation, leading to legal action.
• Copyright and trademark infringement: Using an image, piece of music or even a slogan without proper licensing can result in costly disputes.
• Invasion of privacy: Publishing personal data or images without consent can breach privacy laws.
• Misleading marketing or advertising: Unsubstantiated claims or endorsements, including by paid third-party influencers, can lead to regulatory action.

These risks extend across an evolving variety of media channels, activities and platforms, such as:

• Social media (including Instagram, X/Twitter, LinkedIn, Facebook, TikTok)
• Websites and blogs
• Advertising and marketing communications
• Podcasts and video streaming
• Printed promotional material and in-store displays
• Quotes in the press or broadcast appearances
• Media tie-ins with partners and third-parties

Unfortunately, many of today’s media exposures are often not covered under standard commercial general liability (CGL) or public liability insurance policies. As noted in this article by law firm Hunton, many businesses mistakenly believe they are fully protected, only to find that media-related claims fall outside the remit of their existing coverage.

Real-world consequences: High-profile media liability cases

The business and reputational impacts of media liability cases can be severe. Here are some recent notable examples:

• Regulatory penalties: The U.S. Federal Trade Commission (FTC) recently issued formal warning letters to brands including Coca-Cola, Walmart, and nearly 700 other companies, cautioning them about the potential for civil penalties due to misleading practices involving social media influencers and product endorsements. The FTC flagged concerns over inadequate disclosure of paid partnerships and endorsements that could deceive consumers – highlighting how brands outside the traditional media sector face growing scrutiny and liability exposure for content shared by or through third parties. This serves as a clear example of how retailers and consumer brands can face regulatory and reputational risks related to the media they disseminate or sponsor online. (Source: Emarketer)
• Copyright crackdowns: Organisations penalised for using unlicensed copyrighted music on social channels recently have ranged from cosmetics brands to sports teams. A high-profile example has involved U.S. restaurant chain Chili’s, which faced a copyright lawsuit from Universal Music Group (UMG) in early 2025. UMG alleged that Chili’s used 62 of its songs in its Instagram and TikTok videos without permission, including Frank Sinatra’s “Fly Me To The Moon” and Ariana Grande’s “7 Rings”. This was the second lawsuit Chili’s faced in three months, as the Beastie Boys had previously sued them for using their song “Sabotage” in a social media ad. (Source: Miami Law Review)

In situations like these, specialist media liability insurance can provide protection, helping to cover legal costs, settlements, and crisis management services.

The power of specialist media liability insurance

Media liability insurance offers a tailored solution for these evolving exposures. Unlike broad commercial policies, specialist media liability coverage is designed specifically for content-related risks. It can provide protection against accidental incidents of:

• Infringement of copyright, trademark, or other IP rights
• Libel, slander, and defamation in media
• Breach of privacy or publicity rights
• Negligent publication or misstatements
• Breach of licence terms or scope

Optional sub-limited extensions may include:

• Regulatory defence costs
• Public relations expenses
• Mitigation costs (e.g., withdrawing or modifying content)

With media liability insurance in place, organisations can communicate confidently in all media, knowing they have comprehensive protection for the content they create, sponsor or share.

How an expert in media liability insurance can help you

At Costero Brokers, our Cyber, Media and Technology (CMT) team specialises in crafting bespoke media liability insurance programmes for all kinds of organisations. Whether you’re an insurer looking to place complex media risks, a broker working with content-active clients, or a business leader seeking to safeguard your brand, we can help.

We work closely with leading underwriters at Lloyd’s of London and top-tier international reinsurers to offer you:

• Broad, fit-for-purpose cover that reflects the specific risks of your sector.
• Competitive premiums backed by expert underwriting.
• Support for complex, hard-to-place or high-profile risks.

We understand that each organisation is different. That’s why we don’t take a one-size-fits-all approach. Instead, we partner with you to develop solutions that align with your activities, strategy, and operational footprint.

Ready to safeguard your media content and reputation?

Modern media presents endless opportunities for growth and engagement, but it also comes with new liabilities. With the right insurance partner, you can turn risk into resilience. Costero Brokers can help you obtain a media liability insurance programme tailored to your needs – whether you’re an insurer or broker seeking solutions for a client, or you’re from an organisation that creates and shares content.

Get in touch today to discuss how we can protect your reputation, enable bold communication, and empower you to embrace the media landscape with confidence.

To learn more about our cyber, media and technology insurance solutions and discuss your goals, please get in touch with our expert Jonathan Olley at Costero Brokers.

Learn how the growing wave of AI-related law cases is driving the need for specialist insurance coverage that protects business innovators.

As artificial intelligence (AI) becomes an integral part of how organisations operate, so too do the risks associated with its use. From hallucinations and copyright infringement to algorithmic bias and privacy breaches, the potential liabilities are evolving rapidly – and few companies are fully prepared.

In this article, we explore the emerging landscape of AI-related risks, share examples of how these risks are already playing out in real-world scenarios, and explain how Costero Brokers is helping insurers, brokers and businesses globally stay ahead of the curve with custom-built AI liability insurance programmes.

AI business liability in the news

Several recent high-profile cases illustrate the harmful business impacts that AI-related liabilities can cause. A particularly topical example involves Facebook parent company Meta, which is facing legal action for allegedly training its AI models on pirated digital books – effectively breaching the copyrights of thousands of authors. If the case is successful, this could lead to substantial financial penalties and reputational damage. (Source: BBC News)

An important and long-running law case over AI liability is the litigation by Thomson Reuters against AI startup Ross Intelligence, over alleged training of an Ai model with unlicensed content from the Westlaw legal database. Running since 2020, this case has marked an early and significant legal challenge over how AI systems use copyrighted material – and has become a key precursor to today’s broader legal cases brought against companies that develop and use AI systems. (Source: Skadden Legal News)

As AI has moved into the business mainstream over the last few years, dozens of other legal cases have been filed in the US and worldwide over liabilities from the development, training and usage of AI. The outcome of these cases could reshape copyright law, redefine the boundaries of fair use in AI training, and have major implications for the future of AI across all industries and business sectors. (Source: Wired)

The evolving business insurance landscape of AI risk

Whether an organisation today is buying, customising, or developing AI systems, the adoption of AI introduces a new spectrum of risks – some familiar, many entirely unprecedented – requiring a new insurance approach. These risks include:

• Performance failures: Where an AI system fails to deliver accurate or reliable outputs, potentially causing financial loss or operational disruption.
• Bias and discrimination: Inadvertent algorithmic bias could lead to discriminatory outcomes in hiring, lending, or healthcare decisions, attracting regulatory scrutiny and legal action.
• Privacy breaches: AI models trained on sensitive or unprotected data can expose personally identifiable information (PII), creating compliance liabilities.
• Intellectual property (IP) infringement: Generative AI models may produce content that closely resembles protected works, risking claims of copyright violation.
• Hallucinations and misinformation: Especially in large language models (LLMs), outputs may appear plausible but be factually incorrect—undermining trust and exposing businesses to reputational or legal consequences.

The complexity and uncertainty around these risks can create gaps in traditional insurance coverage, making it essential to work with experts who understand how to navigate and mitigate them.

Insurance solutions built for AI risks

Generic or traditional business insurance policies often fall short of covering AI-related liabilities. This is why new specialist AI liability insurance is increasingly important.

Costero’s AI insurance solutions, developed in partnership with leading global reinsurers, address the unique risk categories associated with AI, including:

• Performance guarantees: Ensuring that an AI solution performs as promised. If underperformance occurs, policyholders are compensated based on agreed thresholds.
• Own damages insurance: Covers financial loss due to underperformance of internally developed AI systems—protecting against business interruption, reputational damage, or increased operational costs.
• Legal liability coverage: Insures against third-party claims arising from biased outputs, IP infringement, data privacy violations, and more.

These covers are carefully crafted to match each client’s specific AI risk profile, with pricing models that evolve alongside exposure.

Finding the right partner for AI liability protection

As a specialist in insurance for technology, cyber and media, Costero offers insurers, brokers and businesses access to expert support in navigating the evolving risks of AI. Our AI liability insurance programmes deliver a range of major benefits and advantages, being:

• Custom-built: We don’t deal in standard templates for business cover. Every policy is individually negotiated to ensure it addresses your client’s exact exposure.
• Globally connected: Through our access to Lloyd’s of London and international markets, we provide fit-for-purpose and competitively priced cover from leading global reinsurers.
• Technically informed: We work with AI-specialist underwriters and actuaries who understand the specific risks associated with different AI model architectures – from foundation models to fine-tuned systems.
• Future-ready: As AI regulation and litigation evolve, so too do our coverage options. We continuously update our programmes to reflect the latest risk, legal and technological developments.

Whether you’re an insurer looking to build new AI-focused capacity, a broker looking for a trusted wholesale partner, or an organisation seeking protection for your in-house AI models and usage, we have the expertise to help you stay ahead of the curve.

Let’s talk about your AI liability insurance needs

AI brings immense business potential – but also unprecedented risks. Whether an organisation builds AI, deploys it, or simply relies on it, insurance needs to keep up. Don’t leave your business or clients exposed to liabilities that traditional policies were never designed to handle.

Talk to Costero to create an AI liability insurance programme designed around your unique needs. Our solutions empower organisations to confidently adopt AI and maximise its benefits – without suffering the potential negative impacts.

To learn more about our AI, cyber, media and technology insurance solutions and discuss your goals, please get in touch with our expert Jonathan Olley at Costero Brokers.