Discover how relationships, trust and face-to-face negotiation are foundational to the London insurance market – and how Costero Brokers can help you access specialist Lloyd’s expertise.

The London insurance market has always been about more than just capacity, capital and contracts. Its real strength lies in the relationships that connect brokers, underwriters, syndicates, managing agents, reinsurers, MGAs, InsurTechs and clients across the world. For complex and specialty risks, those relationships are vital because optimum outcomes often depend on trust, judgement and direct negotiation. Working with an experienced independent Lloyd’s broker such as Costero Brokers can help you connect with the right market participants, present your risk clearly and build a solution shaped around your needs.

London’s global role in specialty insurance

London remains the world’s leading hub for commercial and specialty insurance. The market employs more than 59,000 people and attracts more than USD $159 billion in premium each year, bringing together specialist commercial broking and underwriting communities across Lloyd’s of London, the London company market and associated professional services. (Source: London Market Group)

Lloyd’s of London is central to that global reputation. In 2025, the Lloyd’s market reported gross written premium of GBP £57.9 billion, profit before tax of GBP £10.6 billion and a combined ratio of 87.6%, supported by total capital of GBP £49.8 billion. (Source: Lloyd’s)

These impressive figures show the scale and resilience of the marketplace, but they only tell part of the story. Lloyd’s is valued globally because it brings together specialist underwriting expertise for risks that may be difficult, unusual, emerging or too complex for standard domestic markets.

This is important if you are trying to place risk across areas such as cyber, marine, energy, political violence, professional liability, delegated authority, parametric insurance or new technology-led propositions. In these areas, cover is rarely a simple off-the-shelf purchase. It often requires negotiation, explanation and confidence between the parties involved.

An insurance market built on personal connections

The London insurance market’s relationship-led culture goes back to its earliest days. Lloyd’s traces its origins to Edward Lloyd’s coffee house by the River Thames in the 1680s – a gathering place for merchants, entrepreneurs, sea captains and ship owners – which became a centre of marine intelligence and helped found the modern insurance industry. (Source: Lloyd’s)

That history still shapes the way the London market works. From the beginning, London insurance was based on gathering information, judging risk and agreeing terms between people who knew each other’s reputations. A broker did not simply submit a risk. They explained it, advocated for it and negotiated support from underwriters willing to commit capital.

The times have changed, but the principle has not. Business in the Lloyd’s market is still conducted face to face, with the busy underwriting room central to the smooth running of the market. The majority of this business is placed through specialist Lloyd’s brokers, who facilitate the risk-transfer process between clients and underwriters. (Source: Lloyd’s)

Why human relationships still matter in a digital market

Lloyd’s now operates in a more digital trading environment, with electronic placement, structured data and modernised market processes supporting the way risks are submitted, negotiated and processed.

But technology does not remove the need for human judgement. In specialty insurance, the real challenge is often not just transferring data from one system to another. It is helping an underwriter understand why a risk is credible, why a structure makes sense, and why the proposed terms are commercially workable.

Market relationships are important because they help brokers and underwriters move beyond the surface facts of a submission. Strong relationships can support:

• Better understanding of the risk story behind the data.
• Faster access to relevant decision-makers.
• More open discussion of appetite, pricing, exclusions and structure.
• Greater confidence when a risk is new, unusual or hard to benchmark.
• Constructive negotiation when terms need to be refined.
• Better communication if circumstances change after placement.

For example, a broker who knows an underwriter’s appetite can often tell whether a risk needs more data, a different structure, a stronger narrative or a more suitable lead market before time is wasted on an unsuitable submission.

Interpersonal ‘soft skills’ are vital in this environment. They are at the heart of the mechanism that helps the market work. Listening carefully, asking the right questions, reading the room, understanding underwriter appetite and knowing when to push – or when to pause – can all affect the outcome.

Your broker as London market relationship-builder

The Lloyd’s broker plays a vital role in connecting insurance players worldwide with the London market. Lloyd’s is a broker-enabled market in which strong relationships, backed by deep expertise, play a crucial part. Much of the business placed involves face-to-face negotiations between brokers and underwriters. There are now around 400 registered brokers at Lloyd’s.

For insurance market participants worldwide – including brokers, insurers, MGAs and InsurTechs – working with the right Lloyd’s broker is important. You may have a strong client base, a specialist product idea or a book of business with growth potential. But without the right route into Lloyd’s and the wider London market, it can be difficult to identify the most relevant underwriters, present the opportunity effectively or secure the right blend of capacity.

Your Lloyd’s broker helps by:

• Translating your risk or product concept into a clear market presentation.
• Identifying underwriters with relevant appetite and expertise.
• Negotiating terms, pricing and coverage structure.
• Building support from lead and follow markets where needed.
• Managing the practical details of documentation, endorsements and ongoing communication.
• Advising when Lloyd’s is the right market – and when a wider or alternative solution may be better.

Registered Lloyd’s brokers have direct access to a unique pool of underwriting expertise in the Lloyd’s global marketplace, especially for clients requiring specialist, innovative or bespoke risk solutions.

Why insurance market trust is commercially valuable

Trust is not just a watchword in the London market. It has practical commercial value. Underwriters need confidence that the broker understands the class of business, has presented the risk fairly, and will manage communication properly throughout the life of the placement. Clients and producing brokers need confidence that their Lloyd’s broker is acting in their interests, not simply steering them towards the most convenient option.

That is particularly important where risks are complex, fast-moving or difficult to standardise. The London market can act as a partner for insurance and reinsurance clients globally, providing a home for challenging and developing risks that local insurers may not wish to, or cannot, underwrite.

In this environment, relationships can help create better outcomes because they enable honest conversations. A good broker can find out where appetite genuinely sits, what information is missing, what structure might unlock support, and how to avoid spending time on options that are unlikely to progress.

How Costero Brokers builds stronger market relationships

As an independent Lloyd’s broker, Costero Brokers combines market access with neutrality, agility and specialist experience. Our independence makes a real difference. You need a broker who can look across the market, assess the available options, and build a solution around your requirements rather than around a single market or provider.

For brokers, insurers, MGAs and InsurTechs, Costero can help you use London market relationships intelligently. That may mean finding specialist capacity for a hard-to-place risk, developing a delegated authority route, structuring a subscription placement, supporting an emerging product line, or sense-checking whether Lloyd’s is the right home for your opportunity.

Our role is not simply to introduce you to the London market. It is to help you tell your risk story in a way underwriters can engage with, negotiate professionally on your behalf, and use trusted relationships to build practical insurance solutions.

Put London market relationships to work for you

The London insurance market continues to evolve, and technology will keep improving how risks are submitted, processed and managed. But for specialty insurance, relationships remain one of the London market’s defining advantages. Complex risks need more than data. They need context, judgement, negotiation and trust.

If you are looking to place a challenging risk, develop a specialist insurance solution or explore how Lloyd’s and the London market could support your business, get in touch with Costero Brokers and speak to our experts about your insurance challenges and requirements.

Explore the new cyber crime threats facing organisations, from AI-enabled fraud and deepfakes to invoice manipulation – and learn how Costero’s Crime Connect insurance solution can help insurers, brokers, MGAs and InsurTechs protect business clients.

Cyber crime is no longer only about hackers breaking into systems. For many organisations, the more immediate and significant threat is financial fraud using deceptive emails, manipulated invoices, fake payment instructions, cloned voices, deepfake video calls and impersonation of trusted executives, suppliers or clients. These attacks are becoming more frequent, more believable and more costly. In this article, we highlight five of the most important cyber crime threats facing organisations today, explain why standard cyber insurance may not be enough, and show how working with a specialist Lloyd’s broker such as Costero Brokers can help you build more effective cyber crime protection.

Cyber crime today is more than just malicious hacking

Cyber security remains a board-level priority for organisations. Ransomware, data breaches, remote access compromise and system downtime continue to be serious threats. The UK Government’s 2025/26 Cyber Security Breaches Survey found that 43% of UK companies identified a cyber breach or attack in the previous 12 months, affecting an estimated 612,000 businesses. (Source: UK Government)

But the cyber risk landscape is evolving. Criminals do not always need to defeat your firewall if they can persuade a member of your finance team to make a real payment to the wrong account. Business email compromise, invoice manipulation, supplier impersonation and fund transfer fraud exploit the normal flow of business. They target trust, urgency and routine.

The FBI’s 2025 Internet Crime Report showed cyber-enabled crimes defrauded US victims of nearly USD $21 billion, with AI-enabled incidents among the costliest at almost USD $893 million. The FBI also highlighted compromised corporate emails, voice clones, fake credentials and believable videos as part of the modern fraud toolkit. (Source: FBI)

For organisations today, this is the uncomfortable reality: the weakest point may not be your technology, but the moment a busy employee receives a credible-looking request from someone they think they know and trust.

The top 5 cyber crime threats facing organisations today

1. AI-enabled social engineering

Social engineering is the use of deception to manipulate people into revealing information, changing details, making payments or taking other actions that benefit the criminal.

The technique is not new, but artificial intelligence (AI) has made it more scalable and persuasive. AI can also reduce the obvious red flags – poor grammar, awkward phrasing or inconsistent tone – that once helped staff spot suspicious emails.

Criminals can now generate polished fake emails, translate them accurately, imitate writing styles and produce more convincing lures at volume. They are increasingly using technology to make impersonation more effective, including cloned voices, video deepfakes and executive impersonation.

Social engineering can bypass many traditional controls. A payment instruction may appear to come from a trusted email account. The language may sound normal. The timing may fit a genuine transaction. By the time the fraud is spotted, the money may already have moved through several accounts or jurisdictions.

2. Deepfake executive impersonation

The best-known recent deepfake fraud example remains the 2024 case in Hong Kong, where an employee of global engineering firm Arup was reportedly deceived into transferring HKD $200 million, around USD $25 million, after attending what appeared to be a video call with senior executive colleagues. Arup confirmed that fake voices and images were used and said its internal systems were not compromised. (Source: The Guardian)

This was not simply a systems breach – it was a sophisticated deception that exploited trust, hierarchy and normal approval behaviour. The employee believed the instruction was legitimate because the people on the call appeared to be real executives of the business.

For organisations with international finance teams, multiple offices, remote working, high-value payments or decentralised approval processes, this creates a serious exposure. Criminals can scrape public video, podcasts, webinars, social media and conference appearances to build more convincing impersonations of executives, clients or suppliers.

3. Business email compromise and fund transfer fraud

Business email compromise (BEC) remains one of the most damaging forms of cyber-enabled financial crime. The UK Government’s Fraud Strategy 2026-2029 defines business email compromise as fraud where criminals impersonate a trusted contact by email to divert payments or steal sensitive business data. (Source: UK Government)

A 2026 cyber claims study found that business email compromise and funds transfer fraud together accounted for 58% of claims analysed, while 71% of funds transfer fraud claims were directly linked to social engineering. (Source: Coalition)

Typical scenarios include:

• Criminals impersonate suppliers and ask for bank details to be changed.
• Finance teams receive convincing emails from compromised executive accounts.
• Client or vendor accounts are taken over and used to redirect legitimate payments.
• Fraudsters insert themselves into genuine transactions and manipulate payment instructions.

These risks are now becoming daily business exposures for all kinds and sizes of organisation.

4. Invoice manipulation and supplier impersonation

Invoice manipulation is especially dangerous because it hides inside normal commercial processes. Businesses in sectors such as construction, manufacturing, real estate and professional services often deal with large invoices, multiple parties and frequent payment changes. That gives fraudsters room to manoeuvre.

A 2026 cyber claims report found financial fraud is now the most common incident type, representing around 30% of claims for the third consecutive year. Average stolen funds reached USD $285,000 per incident in 2025, up 16% year on year. The largest single financial fraud loss in that analysis reached USD $9.7 million. (Source: Help Net Security)

The most dangerous invoice frauds often look boring. That is exactly why they work. A payment update, a changed account number or a slightly altered invoice may not trigger alarm if it appears to come from a known supplier at the right point in a transaction.

5. Abuse of trusted platforms and cloud infrastructure

Cyber criminals increasingly hide inside tools that businesses already trust. Instead of relying only on suspicious domains or obvious malware links, attackers route malicious content through legitimate services, cloud platforms and collaboration tools.

The 2026 InsurSec Report suggested that attackers are using services such as Microsoft Exchange Online, Cloudflare, Canva, TikTok and Dropbox to make fraudulent emails look more legitimate and harder for legacy email filters to block. It also found that email was the initial entry vector in 82% of financial fraud claims. (Source: At-Bay)

This is a major challenge for organisations because employees are trained to trust familiar platforms. A link that appears to come through a recognised service may not feel suspicious. Yet it can still lead to credential theft, email account compromise and fraudulent payment instructions.

How organisations can defend themselves

Strong controls still reduce cyber risk. Organisations should review their payment processes, train employees to recognise fraud, and strengthen identity and access controls. Practical steps for organisations include:

• Require call-back verification for new bank details and urgent payment changes, using trusted contact details – not those newly supplied.
• Use multi-person approval for high-value transfers.
• Apply multi-factor authentication across email, finance and remote access systems.
• Train staff on deepfake, voice cloning and supplier impersonation risks.
• Segregate payment authority so that no single person can approve and release large transfers.
• Consider a short cooling-off period for first payments to new accounts or urgent changes to supplier bank details.
• Escalate suspected fraud immediately, including prompt notification to banks, law enforcement and insurers where appropriate.

However, no cyber security measures can guarantee total protection. People make mistakes. Supplier accounts get compromised. AI-generated impersonations are becoming more believable. That is why cyber insurance must be part of the wider resilience strategy, not an afterthought.

Why standard cyber insurance may not be enough

Many conventional cyber policies were designed primarily around risks from data breaches, ransomware, system compromise, privacy liability and business interruption. Those covers remain valuable, but they may not respond adequately to large financial fraud losses.

If covered at all, risks such as social engineering, invoice manipulation and fund transfer fraud may be subject to low sublimits, often around USD $250,000.

That may be nowhere near enough if a fraudster diverts a seven-figure payment. A business can have cyber insurance and still discover that the relevant fraud cover is only a fraction of the loss.

How specialist cyber crime cover can help close the gap

To address this protection gap, Costero Brokers has developed a specialist cyber crime insurance solution – Costero Crime Connect. The product is proprietary to Costero and has been developed in partnership with Lloyd’s of London syndicates to provide standalone or excess limits for e-crime cover up to USD $10 million.

Costero Crime Connect can help organisations access higher limits for key cyber crime exposures, including:

• Social engineering
• Invoice manipulation
• Fund transfer fraud

The capacity can be structured in several ways, including excess of sublimits within an existing cyber policy, standalone e-crime coverages, or standalone e-crime coverages alongside traditional crime insuring agreements.

For insurers, brokers, MGAs and InsurTechs, that flexibility is a real advantage. Some client organisations may need to top up low sublimits in an existing cyber programme – while others may need a dedicated e-crime solution because their payment flows, client base, industry sector or transaction values create a larger exposure.

Building protection around evolving cyber crime risks

Cyber criminals are not waiting for insurance policies to catch up. They are already using AI, deepfakes, compromised emails, supplier impersonation and trusted digital platforms to target organisations and their staff.

Costero Brokers can help insurers, brokers, MGAs and InsurTechs protect clients against these growing cyber crime risks – and can also work directly with larger organisations. We can review where current cyber and crime insurance arrangements may leave gaps, assess whether fraud limits match real-world exposure, and access specialist Lloyd’s capacity for cyber crime risks.

To learn more about Costero Crime Connect and discuss your cyber crime insurance challenges, get in touch with Costero Brokers and speak to our expert, Jonathan Olley, Divisional Director – Cyber, Media & Technology.

Discover how new technologies are supporting traditional independent broker expertise for specialty insurance in the Lloyd’s market – from digital workflows and data quality to operational resilience and client service.

Technology is changing how insurance business is placed, managed and serviced in the Lloyd’s of London market. But it is not replacing the fundamentals that make specialty insurance work: human judgement, strong market relationships, expert underwriting, disciplined risk information and responsive client service. For brokers, insurers, MGAs and InsurTechs, the opportunity is to use technology in practical ways that reduce friction, improve data quality, strengthen resilience and help complex risks reach the right capacity. Working with an experienced Lloyd’s broker such as Costero Brokers can help you combine modern digital workflows with the specialist market knowledge still needed to get business done well.

The pressures driving insurance technology change

Today’s insurance market is under pressure from several directions at once. Clients want faster answers, clearer communication and more certainty around documentation. Brokers and carriers are dealing with rising operating costs, complex compliance expectations, legacy systems, cyber threats and growing volumes of data. MGAs and InsurTechs need to prove they can scale efficiently while keeping underwriting discipline, reporting and governance under control.

These pressures are especially visible in the specialty market, where risks are often complex, international and difficult to standardise. A submission may involve multiple territories, several layers of coverage, unusual exposures, detailed claims information and negotiation with more than one market participant.

Technology can help address these issues, but only when it supports the way specialty insurance actually works. The goal is not to remove human expertise from the process. It is to give brokers, underwriters and clients better tools for gathering information, assessing risk, communicating clearly and making informed decisions.

The marketplace for global specialty insurance

Lloyd’s of London is not a single insurance company. It is the world’s specialty insurance and reinsurance market, bringing together underwriting businesses, brokers, capital providers and coverholders to insure complex and often unusual risks. The market comprises more than 50 leading insurance companies, over 400 registered brokers and a global network of more than 3,000 local coverholders. Lloyd’s provides specialty insurance services across more than 200 territories worldwide, supported by extensive trading rights and specialty underwriting expertise. (Source: Lloyd’s)

For brokers, insurers, MGAs and InsurTechs, Lloyd’s is one of the most important global marketplaces for specialty risk. It combines capital strength, underwriting expertise, international reach and a long-established broker-led trading culture.

Tradition and technology now work together

Lloyd’s has always relied on relationships. Specialist brokers still need to understand underwriting appetite, market conditions, coverage structures, pricing dynamics and the people behind the decisions. Face-to-face conversations and trusted professional relationships are vital.

Today, technology complements tradition. Those human relationships sit alongside digital workflows, structured data, cyber resilience, analytics, automation and artificial intelligence. Lloyd’s 2026 strategy places a technology emphasis on operational resilience, flexible open architecture, individual strategic choice and streamlined data requirements based on common standards. (Source: Lloyd’s)

This strategy recognises that the modern Lloyd’s market needs to be both relationship-led and technology-enabled. Brokers still need judgement, but they also need efficient systems, clean information and secure ways to collaborate with clients and market partners.

How technology is supporting independent Lloyd’s brokers

For independent brokers, technology is evolving the practical mechanics of the job. It can help brokers:

• Collect and structure risk information more efficiently.
• Reduce repeated data entry and manual administration.
• Track negotiation history and documentation more clearly.
• Support faster communication between clients and underwriters.
• Improve renewal planning and reporting.
• Strengthen audit trails and operational oversight.
• Use analytics to understand market appetite and placement strategy.

Independent brokers do not usually win business on cost alone. They compete on expertise, responsiveness, relationships and the ability to navigate specialist markets intelligently. The right technology helps them spend less time managing process friction and more time advising clients, designing coverage and securing capacity.

Better data, better submissions

One of the most important technology issues in specialty insurance is data quality. Underwriters cannot assess a risk properly if the information is incomplete, inconsistent or difficult to interpret. Poor data can slow down responses, create repeated queries, increase the risk of errors and make downstream processing harder. For complex risks, that can affect not only placement, but also accounting, claims and future renewals.

This is why data standards are becoming more important across the insurance and reinsurance market. In 2025, insurance industry standards body ACORD launched its GRLC Generation 2.0 Data Standards for Global Reinsurance & Large Commercial business. These standards support digitalisation from placing to binding, claims and settlement, improving efficiency, interoperability and data quality. (Source: ACORD)

For brokers, better data is not just a technical issue. It is part of good client advocacy. A well-prepared submission helps underwriters understand the risk more quickly and gives clients a better chance of receiving informed, competitive responses.

AI, governance and the changing insurance market

Artificial intelligence (AI) is becoming a major topic across insurance, but its adoption needs to be treated carefully. For Lloyd’s market participants, the key issue is not simply whether AI can make processes faster. It is whether AI can be used safely, transparently and within a clear governance framework.

That means firms need to think carefully about issues such as confidentiality, data protection, intellectual property, bias, explainability, accountability and human oversight. These are especially important in specialty insurance, where decisions may involve complex risk information, sensitive client data and significant financial exposure.

In April 2026, the Lloyd’s Market Association (LMA) launched an AI Adoption Toolkit to support governance-led implementation across the Lloyd’s market. The toolkit includes practical guidance on areas such as risk tiering, data protection, security, intellectual property, training and accountability. (Source: LMA)

For brokers, insurers, MGAs and InsurTechs, the broader point is clear: AI may become part of the wider insurance technology landscape, but it should not be treated as a shortcut around expertise, compliance or professional judgement. Any use of AI in the Lloyd’s market needs to be responsible, well-governed and subject to appropriate human control.

Operational resilience and cyber risk

Greater use of technology also creates greater operational dependency. If systems fail, communications are disrupted or a cyber incident affects a key market participant, the impact can be significant.

Lloyd’s emphasises operational resilience as a strategic priority. In 2025, Lloyd’s conducted a Market Wide Scenario Exercise to test this resilience. This simulated a broker outage triggered by a cyber incident compromising internal systems. The scenario involved the broker being safely disconnected from Lloyd’s systems to prevent malware spreading. (Source: Lloyd’s)

This highlights that technology is not just about speed and convenience. It is also about resilience. Brokers and market participants need secure communications, business continuity planning, robust supplier oversight, incident response procedures and clear fallbacks if systems become unavailable.

For clients, this matters because insurance is often most valuable when things are already under stress. You need brokers and partners who can continue to communicate, advise and act when market conditions or operational events become difficult.

Innovation and the InsurTech ecosystem

Lloyd’s continues to be a major centre for InsurTech innovation. Lloyd’s Lab is an accelerator programme designed to help innovative ideas gain traction in the market, giving technology businesses access to experienced insurance professionals and the world’s specialty insurance market.

Recent Lloyd’s Lab cohorts have included themes such as operational efficiency within the Lloyd’s market, new insurance products and resilience-focused innovation. Alumni from the programme have collectively raised more than USD $1.7bn in investment and generated USD $359m in gross written premium, while 97% of alumni remain actively trading within the Lloyd’s market. (Source: Lloyd’s)

For MGAs and InsurTechs, this shows why Lloyd’s is important. It is not only a marketplace for capacity; it is also an ecosystem where new ideas in underwriting, data, distribution, analytics and risk management can be tested and developed.

Technology benefits for Lloyd’s market participants

Used well, technology can help address many of the day-to-day challenges facing Lloyd’s market participants. It can support:

• Speed: faster information gathering, communication and response handling.
• Accuracy: cleaner data, fewer errors and stronger documentation.
• Transparency: clearer audit trails, renewal tracking and client reporting.
• Resilience: better preparation for outages, cyber incidents and operational disruption.
• Scalability: growth without simply adding more manual administration.
• Market access: stronger presentation of complex risks to suitable underwriters.

But technology by itself does not solve a placement challenge. A poor submission does not become strong simply because it is delivered through a modern system. A complex risk still needs to be explained properly. Market appetite still needs to be understood. Coverage still needs to be negotiated by people who know the class, the underwriters and the commercial realities.

How to get the best from technology in the Lloyd’s market

To get the full benefit of insurance technology, while still drawing on market experience and strong relationships, you need the right partner. Costero Brokers combines Lloyd’s market expertise with practical understanding of how technology now shapes specialty insurance. As an independent Lloyd’s broker, Costero can help you prepare risk information clearly, approach suitable markets, communicate effectively with underwriters and navigate the processes that sit around modern placement.

For brokers, insurers, MGAs and InsurTechs, that support can be valuable at multiple stages of the insurance lifecycle:

• Assessing whether Lloyd’s is the right route to market.
• Structuring a clear and credible submission.
• Understanding data and documentation expectations.
• Engaging with appropriate market participants.
• Supporting efficient communication through the placement process.
• Helping you combine specialty market access with modern working practices.
• Streamlining claims, reporting and client service.

The best results in the Lloyd’s market still come from combining human expertise with efficient execution. Technology can improve the process, but relationships, judgement and specialist knowledge remain central.

To discuss how technology, data quality and specialist Lloyd’s market access can support your placement, operational or growth objectives, contact Costero Brokers and speak to our experts.

The global insurance market in Q1 2026 has been shaped by multiple factors, including economic uncertainty, softer pricing in several classes, continued catastrophe pressure and renewed geopolitical disruption.

For brokers, MGAs, insurers and insurtechs worldwide, this first quarter of 2026 has brought more available capacity in many areas, but no meaningful reduction in underlying risk. Conditions may be easing in parts of the market, but disciplined underwriting, specialist placement strategy and careful portfolio management remain essential. 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 growth remains subdued: The UK entered 2026 with limited momentum. GDP was flat in January, while GDP over the three months to January was estimated to have grown by 0.2% versus the previous three months, reinforcing the sense of a slow-growth environment rather than a clear recovery. (Sources: ONS, Bank of England)
• Inflation and rates still matter: UK inflation eased from its earlier peak, but remained above target and vulnerable to renewed energy-related pressure. In March 2026, the Bank of England held Bank Rate at 3.75%, signalling continued caution. (Sources: Bank of England, ONS)
• The US remains steady but cautious: The Federal Reserve held the federal funds target range at 3.50% to 3.75% in March 2026, reflecting a more stable but still uncertain backdrop. For the insurance market, that means the familiar balance continues: improved investment returns on one side, with persistent uncertainty around growth, financing conditions and long-tail loss trends on the other. (Sources: Federal Reserve, Reuters)
• Global resilience remains fragile: The IMF projected global growth of 3.3% for 2026 in its January 2026 World Economic Outlook update, suggesting a stable baseline at the start of the year. Even so, Q1 2026 showed how quickly energy, shipping and geopolitical shocks can unsettle that picture, with direct implications for trade, inflation and insured risk. (Source: IMF)

Insurance Industry Developments

• Commercial pricing continues to soften: The broad direction of travel remained favourable for buyers. Global commercial insurance rates fell 4% in Q4 2025, the sixth consecutive quarterly decline, indicating a softer market heading into 2026. Property, financial lines and cyber have all seen more competition in many placements. (Source: Marsh)
• Discipline remains intact: Softer conditions should not be confused with indiscriminate appetite. Accounts with poor loss histories, weak data, accumulation concerns or complex exposures still face scrutiny. The market is more competitive, but still selective, especially on distressed or harder-to-model risks. (Sources: Reuters, Marsh)
• UK conduct issues remain commercially relevant: The UK Financial Conduct Authority says people who pay monthly for insurance are saving a total of around GBP £157 million a year as premium-finance costs fall. That is a regulatory story, but also a commercial one: affordability, fair value and instalment pricing remain live issues for distributors and carriers serving retail and SME clients. (Source: FCA)
• Lloyd’s is prioritising practical modernisation: Lloyd’s of London reported strong 2025 results while signalling a more incremental approach to market reform, after stepping back from its original single-platform Blueprint Two vision in favour of interoperable, practical change. For brokers, MGAs and insurtechs, that suggests continued digital progress, but with more emphasis on workable solutions and less on one centralised transformation vision. (Sources: Lloyd’s, The Times)

Underwriting Performance

• Lloyd’s remains strongly profitable: Lloyd’s of London reported profit before tax of GBP £10.6 billion for 2025, gross written premium of GBP £57.9 billion and a combined ratio of 87.6%. Those are strong results by historic standards and confirm that underwriting and investment performance remain supportive. (Source: Lloyd’s)
• Underlying trends need watching: Strong headline profitability does not mean every margin is improving. Lloyd’s of London’s underlying combined ratio moved to 81.8%, which is still healthy. As pricing eases, sustaining that level of performance is likely to depend increasingly on underwriting discipline and portfolio management. The market remains profitable, but less forgiving. (Source: Lloyd’s)
• Differentiation is increasing across carriers: Other major insurers also posted solid recent underwriting metrics. Zurich reported a 92.6% P&C combined ratio for 2025, while Travelers reported an 82.2% underlying combined ratio for the fourth quarter of 2025. The common theme is that strong results are still being achieved, but increasingly by carriers with tighter risk selection, better data and stronger control of accumulation and severity trends. (Sources: Reuters [1], [2])

Tech, Cyber and AI Developments

• Cyber remains competitive but exposed: Industry cyber rates fell 7% globally in Q4 2025, continuing the pattern of pricing relief seen through much of the past year. Yet the underlying threat environment remains serious, with ransomware, cloud dependency, third-party concentration and systemic accumulation still central to underwriting. (Source: Marsh)
• Digital incidents still create real-world losses: A March 2026 cyber attack on US medical device maker Stryker disrupted order processing, manufacturing and shipments. That is a useful reminder that cyber risk is no longer confined to data compromise or extortion; it increasingly has physical, operational and supply-chain consequences relevant to property, BI and liability discussions as well. (Source: Reuters)
• AI is becoming an insurance issue, not just a technology issue: In Q1 2026, the UK Financial Conduct Authority confirmed new operational-incident and third-party reporting rules to strengthen resilience, while also launching the Mills Review on the long-term impact of AI in retail financial services. Alongside wider UK government work on AI and copyright, this points to growing focus on governance, model risk, resilience, liability and wording clarity. (Sources: FCA, UK Government)

Reinsurance Market

• January renewals confirmed a softer trend: The 1 January renewals showed materially improved conditions for buyers in many property catastrophe placements. Risk-adjusted global property-catastrophe reinsurance rates-on-line fell by 14.7% on average, with retrocession down 16.5%. That marks a clear easing from the recent hard-market peak, even though terms remain firmer than in the pre-2023 environment. (Sources: Howden [1], [2])
• Reinsurer profitability remains solid: Softer pricing has not eliminated strong earnings. Ratings agency Fitch reports that reinsurance renewals are likely to keep softening, but that profits should remain solid in 2026. Better capital positions and improved earnings have given reinsurers room to compete, though discipline remains visible where structures are complex or exposures difficult to model. (Source: Fitch Ratings)
• Specialist gaps still need specialist solutions: Better headline conditions do not mean every risk is easy to place. Cyber accumulation, marine war, political violence, non-damage BI and other tail risks still require careful structuring and access to specialist markets. For cedants and brokers, this is still a market where expertise makes a material difference. (Sources: Fitch Ratings, Howden)

Natural Catastrophes

• Catastrophe losses remain high: Munich Re estimated global insured natural catastrophe losses at USD $108 billion for 2025, while Swiss Re put the figure at USD $107 billion. That reinforces a now-familiar pattern: annual insured nat-cat losses above USD $100 billion are no longer exceptional, with secondary perils continuing to drive a large share of activity. (Sources: Munich Re, Swiss Re)
• 2026 is unlikely to offer much relief: Reuters reported that Swiss Re expects insured nat-cat losses to rise to around USD $148 billion in 2026, with significantly worse downside scenarios possible. For the market, that keeps pressure on aggregate management, pricing adequacy and the search for more flexible protection solutions. (Source: Reuters)

Geopolitical Risks

• Middle East tensions have pushed marine risk back to the fore: Q1 2026 ends with renewed concern around Iran, the Persian Gulf and shipping through the Strait of Hormuz. The Lloyd’s market has been engaging with the US government on maritime contingency planning, while Chubb launched a war-risk facility to support ships transiting Hormuz. This has obvious implications for marine hull, cargo and liability cover, especially where standard policies restrict conflict-related exposures. (Sources: Reuters [1], [2])
• The effects go well beyond marine: Disruption in the Persian Gulf also affects energy, trade, sanctions compliance, contingency planning and cyber risk. Around 20% of global oil supply normally passes through Hormuz, underlining how quickly a regional conflict can become a wider insurance and reinsurance issue. (Source: Reuters)

Looking ahead: Market needs and industry opportunities

Several insurance industry gaps remain obvious: This first quarter of 2026 reinforced the need for better solutions around cyber-physical loss, AI-related liability, supply-chain interruption, political violence, nat-cat protection gaps and other risks that do not fit neatly within legacy policy structures. Capacity exists, but in several of these areas product development and market coordination still lag behind client needs.

The market opportunity is in smarter, more integrated solutions: As cyber, physical, geopolitical and climate risks become more interconnected, insureds increasingly need joined-up advice and flexible structures rather than siloed products. That highlights the benefit of partnering with a specialist broker able to access both London market and wider global capacity for complex placements.

What this means for you and your clients

If you would like to discuss what these developments could mean for your placement strategy, renewal planning or access to specialist capacity in 2026, please get in touch with Costero Brokers or explore more insights on our website.

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 how to find the right marine and cargo insurance in a time of global challenges – and why Lloyd’s of London has a vital role.

When geopolitical tensions flare around major shipping lanes, the impact is felt far beyond the immediate conflict zone. Cargo can be delayed, rerouted or stranded. Vessels and crews can face heightened exposure. Insurance can become more complex overnight. Recent disruption around Iran, the Persian Gulf and the Strait of Hormuz has brought these realities into sharp focus, but the underlying issues are not new and they are not going away.

For insurers, brokers, ship-owners and organisations moving goods internationally, the real question is how to secure robust, responsive marine and cargo protection, even when conditions change. That is where a specialist Lloyd’s broker such as Costero Brokers can make a material difference. Drawing on Lloyd’s of London and international markets, Costero delivers tailored solutions for hard-to-place risks and complex marine and cargo exposures.

The Gulf conflict underlines global marine vulnerabilities

Recent events in and around the Persian Gulf show how quickly marine operations can come under pressure. Conflict escalation in the region has disrupted shipping flows through the Strait of Hormuz, with ripple effects extending into energy markets, maritime transport and global supply chains. The Strait is a critical chokepoint for global trade, carrying around one quarter of seaborne oil trade and a significant share of wider maritime commerce. (Source: UNCTAD)

Even for organisations with no direct exposure to Iran or Gulf ports, disruption in such a corridor can have real consequences, including:

• Longer voyage routes.
• Port congestion.
• Delays and missed delivery windows.
• Rising freight and operating costs.
• Tighter insurance terms.
• Increased need for war-risk and related cover.

A conflict-related incident rarely affects only one vessel or one shipment. It can trigger a chain of consequences involving voyage deviation, cargo deterioration, detention, crew welfare concerns, contractual disputes, and urgent changes to insurance arrangements.

At such times, specialist marine and cargo insurance broking is critical – when risks are difficult to place, conditions are changing quickly, and clients need practical solutions rather than generic cover.

The wider view: Marine cargo risk is broader than conflict alone

The recent Gulf situation is a timely reminder of a wider truth. Conflict is only one part of the marine risk picture. Shipping and cargo businesses are also facing growing pressure from factors such as climate change, extreme weather and cyber threats.

1. Geopolitical conflict

Conflict can affect shipping far beyond active war zones. It can create uncertainty over routes, trading partners, sanctions, security arrangements and insurability. For cargo owners and vessel operators, that can mean a sudden reassessment of risk, both operationally and financially.

2. Climate change and extreme weather

Climate-related disruption is becoming a regular feature of global trade. Droughts, extreme weather and climate-related events are affecting shipping routes and creating volatility in maritime transport. Weather-related disruption can affect ports, delay cargo, increase storage times and lead to damage or deterioration. (Source: UNCTAD)

Climate-related marine and cargo risks include:

• Storms disrupting sailings and port operations.
• Flooding affecting port infrastructure and warehousing.
• Heatwaves damaging temperature-sensitive cargo.
• Drought affecting navigability and inland shipping connections.

3. Emerging cyber attacks

Cyber risk is now an operational marine risk, not just an IT issue. The International Maritime Organization (IMO) has made clear that cyber threats must be incorporated into maritime risk management. A cyber event can disrupt navigation, communications, terminal systems and cargo-handling operations, with direct physical and financial consequences. (Source: IMO)

Potential marine and cargo impacts of cyber attacks include:

• Vessel operational disruption.
• Delayed or immobilised cargo.
• Port and terminal shutdowns.
• Compromised onboard or shore-based systems.
• Liability and business interruption losses.

Marine and cargo insurance must be built around real-world exposures

In this environment, marine and cargo insurance should be structured as a solution, not bought as a commodity. Depending on your exposure, you may need a combination of:

• Marine cargo insurance
• Hull and machinery cover
• War risks insurance
• Loss of hire cover
• Liability protection
• Delay-related extensions
• Stock throughput insurance
• Specialist claims support

You may also need policy wordings that reflect:

• Sanctions considerations
• Rerouting or voyage deviation
• Transhipment exposures
• Cargo accumulation risks
• Cyber-physical loss scenarios
• Changing port and route conditions

When conditions tighten, the difference between a policy that looks adequate and one that genuinely responds can be significant.

Why Lloyd’s is the market for complex marine risks

Lloyd’s of London remains the market that brokers and insureds worldwide turn to when marine risks become more complex. Lloyd’s describes itself as the world’s leading insurance and reinsurance marketplace, providing specialist insurance services in more than 200 countries and territories. That international reach matters in marine because exposures are often multi-jurisdictional and rarely fit a one-size-fits-all model. (Source: Lloyd’s)

Lloyd’s is particularly well suited to complex marine and cargo challenges because it offers:

• Deep specialist underwriting expertise.
• Strong marine heritage and market knowledge.
• Access to subscription capacity across syndicates.
• Flexibility for tailored and layered solutions.
• A global claims infrastructure, including the Lloyd’s Agency Network.

For difficult placements, Lloyd’s can often provide the flexibility, specialism and capacity that standard markets cannot.

Why choosing the right Lloyd’s broker matters

Lloyd’s is not a self-service market. Access, presentation and execution all matter. Lloyd’s itself states that Lloyd’s-registered brokers are experts in their fields and provide efficient, direct access to the specialist market.

If you are an insurer, broker, ship-owner or organisation shipping cargo by sea, land or air, you need a partner that can help you:

• Present your risk clearly and credibly.
• Structure the placement effectively.
• Negotiate the right terms and conditions.
• Secure appropriate capacity.
• Respond quickly as exposures change.
• Support you properly when a claim arises.

A strong Lloyd’s broker does much more than take a submission to market. They help shape the underwriting story, identify the pressure points, and build a programme that reflects how your business actually operates.

How Costero Brokers adds value

This is where Costero Brokers makes the difference. As an independent Lloyd’s-registered broker, Costero provides bespoke insurance and reinsurance solutions for clients in the marine and cargo transportation sector, working closely with Lloyd’s of London and international reinsurance markets. Our focus is on tailored, comprehensive and competitively priced cover, especially where risks are complex or difficult to place.

Costero also brings value through:

• Expertise in geopolitical conflict and war-related insurance.
• Access to specialist Lloyd’s and global reinsurance capacity.
• Tailored underwriting support for challenging marine risks.
• Practical knowledge of cargo, vessel and operational exposures.
• An efficient and responsive in-house claims service.

We specialise in handling hard-to-place marine risks that need in-depth experience, swift decisions and strong market relationships.

In a volatile world, marine insurance expertise matters

Marine and cargo risk is becoming more and more complex. Regional conflicts, weather volatility and cyber disruption are all adding pressure to global trade and transportation. The organisations best placed to respond will be those that prepare early, structure cover carefully and work with specialists who understand how to navigate the market when conditions change.

If you are looking for a marine and cargo insurance partner that can help you secure tailored, responsive and comprehensive protection, Costero Brokers can help. We work closely with Lloyd’s of London and international reinsurance markets to create solutions based around your routes, assets, cargoes and risk appetite.

Talk to us about your marine and cargo challenges

Whether you are an insurer, broker, ship-owner or organisation moving cargo internationally, the right insurance structure can make all the difference when conditions become more complex.

To learn more about our marine and cargo insurance solutions and discuss your goals, please get in touch with our expert Jack Nicholson at Costero Brokers.

Discover how Lloyd’s of London can help you insure emerging industries such as drones, cannabis, crypto and climate tech.

Emerging industries can become commercially significant long before the insurance market feels fully comfortable with them. Drones, cannabis, crypto and climate tech are all good examples: each has moved beyond theory into real operations, real investment and real liabilities. For businesses in these sectors – and for the insurers, brokers, MGAs and InsurTechs that serve them – the challenge is often not whether cover is needed, but how to secure the right capacity, wording and underwriting partner. That is where specialist market access matters. Costero Brokers creates tailored solutions for UK, US and international clients, drawing on established relationships across Lloyd’s, London company and international markets.

Emerging industries are no longer niche

An increasing variety of emerging industries and business sectors now sit in the gap between “innovative” and “mainstream” – commercially growing, but still difficult to place in standard insurance markets.

Examples include:

• Drone operators working in inspection, surveying, logistics, media, agriculture and public safety. Europe alone has more than 2 million registered drone operators. (Source: EASA)
• Cannabis businesses operating in regulated markets, especially in North America, but facing uneven legal treatment and inconsistent insurance availability.
• Crypto and digital assets businesses, from exchanges and custodians to infrastructure, payments and service providers, all carrying a mix of cyber, crime, operational and regulatory exposures.
• Climate-tech companies, including battery storage, carbon capture and other transition technologies, which are scaling quickly but bring technical, environmental and performance risk. Momentum has grown sharply in carbon capture, with over 700 projects in development across the value chain. Separately, the IEA says grid-scale batteries are projected to account for the majority of future energy storage growth worldwide. (Source: IEA)

For insurance professionals, that means the opportunity is real – but so is the complexity.

Emerging industries face new combinations of risk

What makes emerging industries difficult to insure is not just novelty. It is the way multiple exposures often sit inside a single account. Below, we explore risks across four emerging industries:

1. Drones business risks

Drone businesses can face a wide range of challenges and risks:

• Aviation liability
• Bodily injury and property damage
• Privacy and data issues
• Cyber compromise
• Product liability
• Cross-border regulatory complications

For example, a single drone incident can trigger multiple liabilities at the same time – including physical damage, operational interruption and third-party liability.

2. Cannabis business risks

Potential exposures in the regulated cannabis industry can include:

• Product liability
• Stock and property risk
• Crime and theft
• Management liability
• Regulatory and compliance issues
• Business interruption

This sector can be especially awkward because coverage availability still varies widely by jurisdiction, and much of the market sits in excess and surplus lines rather than standard admitted placements. (Source: NAIC)

3. Crypto and digital assets business risks

Typical exposures facing businesses in crypto and digital assets include:

• Cyber attacks
• Theft and fraud
• Custody failure
• Technology E&O
• Directors’ and officers’ liability
• Regulatory scrutiny
• Third-party liability linked to outages or security failures

These businesses often combine financial risk, technology risk and reputational risk in ways that standard policies do not address neatly.

4. Climate tech business risks

Climate-tech businesses may face multiple challenges:

• Construction and delay risk
• Machinery breakdown
• Technology performance risk
• Fire and explosion exposures
• Environmental liabilities
• Supply-chain disruption
• Contractual liability linked to performance guarantees

This is particularly relevant for battery storage, carbon capture and other scaling technologies where the engineering, regulation and claims environment are still evolving.

Emerging industries risks in the news

These risks are not hypothetical. Recent events show how quickly emerging-industry exposures can become severe losses or liability events.

• Drones: In January 2025, a civilian drone collided with a fire-fighting aircraft during the Los Angeles wildfires, damaging and grounding the plane. The drone operator later pleaded guilty to unsafe behaviour. This illustrates how a single drone can create aviation liability and operational disruption. (Source: US Department of Justice)
• Cannabis: In April 2025, Medical Marijuana, Inc. faced a case in the US Supreme Court for alleged mislabelling of a CBD product. The plaintiff, a truck driver, said he used a product marketed as THC-free, later tested positive for THC, and lost his job. (Source: Reuters)
• Crypto: In February 2025, around $1.5 billion in virtual assets was reportedly stolen from crypto exchange Bybit by North Korea-sponsored hackers – underlining the scale of cyber crime and custody exposures in the crypto industry. (Source: FBI)
• Climate tech / battery storage: In January 2025, a major fire at Vistra’s Moss Landing battery storage facility in California triggered local evacuation orders, highlighting the property, engineering, environmental and liability implications around large-scale energy storage. (Source: Reuters)

Why finding insurance for emerging industries is so difficult

For emerging industries, the insurance problem is rarely just price – it is also underwriter appetite. Common barriers to finding cover include:

• Limited loss history: Underwriters may not have enough credible long-term data to price confidently.
• Regulatory uncertainty: Rules can vary sharply between countries, states and territories, especially in industries such as cannabis, drones and digital assets.
• Blended exposures: These risks often cut across property, casualty, cyber, financial lines, marine, aviation or environmental covers rather than fitting one standard class.
• Aggregation concerns: Markets may worry about systemic cyber events, coordinated fraud, battery-fire patterns or regulatory shifts that affect many insureds at once.
• Wording gaps: Standard policy forms may leave uncomfortable grey areas around definitions, exclusions, triggers and territorial scope.
• Patchy capacity: Capacity may exist, but in fragments – spread across multiple underwriters, territories or product lines rather than sitting in one clean solution.

This difficulty applies not only to the business itself, but also to the insurers, brokers, MGAs and InsurTechs trying to serve that business. You may have a good client opportunity, a sound distribution plan and strong demand – but still struggle to find specialist capacity, suitable paper or underwriters with genuine appetite.

How Lloyd’s of London can help with insurance for emerging industries

This is where Lloyd’s of London can be especially valuable for emerging industries because it offers:

• Specialist underwriting expertise.
• Subscription capacity, allowing multiple carriers to share complex risks.
• Delegated authority structures, which are highly relevant for MGAs and programme business.
• Global reach, with around 80 regional insurance licences and the capability to write reinsurance business in over 200 territories.

The market is also important for MGAs because becoming a Lloyd’s coverholder enables you to enter into insurance contracts on behalf of a Lloyd’s syndicate (authorised by a Lloyd’s Managing Agent, under a binding authority). That delegated model can be a powerful route for specialist products and niche propositions.

In plain terms, Lloyd’s can help you where domestic markets are too narrow, too cautious or too rigid.

Why the right Lloyd’s-registered broker makes the difference

While Lloyd’s offers multiple benefits for insuring emerging industries, accessing it well is not a simple matter. The quality of the outcome can depend on a range of factors, such as:

• Framing the proposition attractively to underwriters.
• Explaining the exposure accurately.
• Building the submission correctly.
• Assembling capacity across Lloyd’s and other international markets.

Partnering with the right Lloyd’s-registered broker is essential. Costero Brokers is a specialist in complex and international business, with tailored solutions and strong relationships across Lloyd’s, London company and international markets. Our areas of expertise include Cyber, Media & Technology, Binders & Programs, and Insuretech & Emerging Risk, including Digital Assets. That mix is directly relevant when you are trying to place non-standard, fast-evolving risks or build specialist products for them.

Achieving insurance success for emerging industries

If you are operating in an emerging industry – or trying to insure clients in one – the key challenge is not just recognising the exposure. It is finding the right specialist capacity and the right market partner to make the risk insurable on workable terms.

This is why your Lloyd’s broker can make all the difference. With access across Lloyd’s and international markets, and a focus on bespoke specialty insurance solutions, Costero Brokers is well placed to help insurers, brokers, MGAs, InsurTechs and commercial clients navigate hard-to-place risks in emerging industries such as drones, cannabis, crypto and climate tech.

Get in touch with us at Costero Brokers to discuss your requirements and speak with our experts.

Discover why insurers, brokers, MGAs and InsurTechs worldwide look to London syndicates to cover hard-to-place risk and build custom protection for clients.

If you’re trying to build, place, or scale a specialist insurance proposition today – whether you’re a broker, insurer, MGA or InsurTech – you’re operating in a world where risks are moving faster than traditional products. Cyber is colliding with physical loss. Geopolitics is reshaping supply chains. Climate volatility is pushing clients towards parametric solutions and better resilience planning. In that environment, Lloyd’s of London remains one of the few places where unusual, complex and “hard to place” risks can still find capacity, expertise and a route to market – quickly. And if you want to access that effectively, working with an experienced Lloyd’s broker like Costero Brokers helps you turn the market’s strengths into a practical solution for your client or business.

What’s making specialty placement harder right now?

Even strong insurance businesses are feeling the friction:

• Risk is getting more interconnected. A cyber event can trigger physical damage, business interruption and liability in multiple jurisdictions. Lloyd’s has published and supported research on cyber’s potential to cause real-world physical impacts and systemic aggregation. (Source: Lloyd’s)
• Geopolitical volatility is back in the underwriting room. Political risk, trade disruption, sanctions and conflict-driven loss scenarios are no longer “tail” events. Lloyd’s has highlighted how major geopolitical conflict can create outsized economic and supply chain shocks. (Source: Reuters)
• Clients want certainty and speed. Traditional indemnity claims can be slow for certain perils; parametric triggers and automated processes are gaining traction, especially where rapid liquidity matters. (Source: Lloyd’s)
• Capacity is selective. Syndicates are scrutinising wordings, aggregation, and exposure management – particularly in cyber and nat cat – while still needing growth in emerging sectors.

So the question becomes: where do you go when a risk doesn’t fit the standard template – or when you need to assemble capacity across multiple specialist appetites?

The unique advantages of Lloyd’s of London

Lloyd’s isn’t one insurance company. It’s a regulated marketplace where syndicates (managed by managing agents and backed by capital providers) underwrite risks brought in by accredited brokers. Lloyd’s Corporation provides the market framework, oversight and central services that help protect the market’s reputation and functioning.

And crucially, Lloyd’s sits inside the broader London subscription market approach, where multiple syndicates can take a share of the same risk – ideal when the exposure is big, complex or novel.

Why Lloyd’s is the home of specialty insurance

“Specialty insurance” is really shorthand for risks that require specialist underwriting judgement, bespoke wordings, tailored claims handling, and often shared capacity across multiple markets. Lloyd’s has been built around exactly that model since its 17th-century origins in Edward Lloyd’s coffee house, where marine merchants gathered to share shipping intelligence and transfer risk.

Here are five key reasons why Lloyd’s is still the global home of specialty insurance:

1. Concentrated specialist expertise (and fast access to decision-makers)

The Lloyd’s market is home to a large concentration of specialist underwriters and managing agents. It has evolved to encourage innovation and speed – so brokers can get quick decisions on complex placements.

For you, that means less time stuck in generic referral chains – and more time in real underwriting conversations.

2. A global licence network that makes cross-border business practical

Lloyd’s enables global reach, with around 80 international insurance licences and the capability to write reinsurance in 200+ territories, with many licences supporting cross-border cover.

That’s a powerful advantage if you’re building multinational programmes, placing complex cross-border exposures, or supporting clients who operate (or trade) internationally.

3. The subscription model: shared risk, shared brains, bigger solutions

When a single syndicate doesn’t want (or shouldn’t take) 100% of a risk, the London subscription approach allows multiple insurers to take shares of the risk – bringing complementary expertise and spreading exposure.

This is one of Lloyd’s superpowers for specialty: it’s not just “capacity”, it’s portfolio-level engineering of a placement.

4. Financial strength and resilience – tested by real-world demands

Lloyd’s publishes detailed performance metrics, showing it remains a major global hub for commercial and specialty risk. In the first half of 2025, the Lloyd’s market reported gross written premium of GBP £32.5bn (up 6.2% year-on-year), alongside an underwriting result of GBP £1.5bn and a combined ratio of 92.5% – figures that underline both the platform’s scale and the market’s continued profitability. (Source: Lloyd’s)

These strengths can’t completely remove volatility – specialty markets live with it – but it shows a mature market built to operate through complex loss environments.

5. A culture and infrastructure geared to innovation

Lloyd’s doesn’t view innovation as just a buzzword – it’s an integral aspect of the Lloyd’s culture. One high-profile example is the Lloyd’s Lab, which supports new products and technology-enabled models, including parametric propositions. (Source: Lloyd’s)

For MGAs and InsurTechs, that matters because Lloyd’s can be both an innovation-friendly capacity source and a route to credibility, governance and scalable distribution.

Specialty insurance at Lloyd’s today

The specialty insurance placed at Lloyd’s today extends into many areas – from the original marine cover to cyber, political risk, parametric and beyond – and Lloyd’s is driving industry thinking in these areas.

• Marine and trade-dependent risks: Lloyd’s earliest roots are in marine and cargo insurance – and the market still plays a major role in specialist marine placement. Lloyd’s also positions itself as a leading marketplace for specialist risk solutions across global territories, which is central to marine and cargo where exposures are inherently international. (Source: Lloyd’s)
• Cyber and cyber-physical: Lloyd’s has published research and frameworks on systemic cyber risk and scenarios that go beyond pure data loss – into operational disruption and physical impact. If your clients are dealing with threats to operational technology (OT) and industrial control systems (ICS), supply chain dependencies, or aggregation concerns, Lloyd’s is one of the places where underwriting depth and wording discipline are actively evolving to meet the latest challenges. (Source: Lloyd’s)
• Political risk: Lloyd’s provides practical market guidance on geopolitical risk classes (e.g., confiscation, inconvertibility, non-repossession), reflecting how these covers are structured and placed in a global, regulated environment. This is increasingly relevant for lenders, exporters, infrastructure investors and multinationals operating in frontier or stressed markets. (Source: Lloyd’s)
• Parametric covers: Lloyd’s has published thinking on parametric insurance and smart contracts as tools to improve efficiency and customer experience – and Lloyd’s Lab alumni activity shows parametric being applied in real embedded propositions (for example, travel disruption). Parametric is not “instead of” indemnity in every case, but it can be a powerful complement – especially where speed of payout is the product. (Source: Lloyd’s)

Think Lloyd’s for deep capacity and custom solutions

If you’re building or placing specialty business, Lloyd’s can help you:

• Access diverse appetites in one marketplace (and structure layered/shared placements efficiently).
• Design bespoke wordings and programme structures for risks that don’t fit standard policy forms.
• Support international distribution and compliance using the market’s multinational capabilities and licence footprint.
• Innovate faster – particularly for MGAs/InsurTechs looking to test, prove and scale new specialty products.

Securing the optimum results from Lloyd’s

Lloyd’s is a powerful insurance resource – but it’s not “plug and play”. Getting the outcome you want depends on how you present the risk, which syndicates you approach, how you shape wordings, and how you assemble capacity to match the client’s commercial reality.

An experienced  Lloyd’s-approved intermediary like Costero Brokers helps you do that by:

• Translating complex exposures into a clear underwriting story,
• Accessing the right specialist markets (at Lloyd’s and beyond),
• Structuring placements that work across territories and stakeholders,
• Supporting you through negotiation, binding and claims advocacy.

Next step: Discuss your specialty insurance challenge

If you’re exploring specialty capacity, building a new MGA/InsurTech proposition, or trying to solve a placement problem that’s finding no appetite, speak to Costero Brokers. We’ll help you sanity-check your approach, shape the submission, and find the right Lloyd’s and international market partners. Explore our specialty insurance solutions.

Get in touch with us at Costero Brokers to discuss your requirements and speak with our experts.

Understand how insurance risks actually get placed in the Lloyd’s market, with our clear, jargon-free explanation of slips, endorsements, lead/follow markets, and the subscription system.

What does it really mean to ‘place a risk’ at Lloyd’s of London? Lloyd’s is not a single insurer, reinsurer or underwriter. It’s an insurance marketplace, and risks are often shared across multiple underwriters through a very specific system of slips, lead/follow markets, endorsements and “subscription” signing.

That may initially sound complex and confusing – but taking advantage of the unique opportunities at Lloyd’s can be important if you want access to specialist capacity and flexible structures. So understanding risk placement at Lloyd’s can be a major advantage for you as an insurer, broker, MGA or InsurTech, wherever you are in the world.

Learn more with our quick and simple guide to risk placement at Lloyd’s – and discover why having a specialist Lloyd’s-approved broker like Costero Brokers on your side can make a very real difference.

Challenges facing insurance industry players worldwide

Today’s insurance market is pushing everyone to move faster and be more precise at the same time:

• New risks don’t fit neat templates. Cyber, intangible assets, climate-driven losses, supply chain exposure and parametric triggers all demand custom structures and tight wording.
• Capacity is fragmented. You increasingly have to assemble a programme from multiple markets to reach the limit you need – particularly for specialist classes.
• Regulatory expectations are higher. You can’t ‘sort it out later’ when it comes to where a risk is located, which licences apply, and what needs to be evidenced.
• Clients want speed and certainty. They expect quick decisions and clean documentation, even when the placement is complex. You need access to decision-makers and rapid answers.

The capacity and solutions offered by Lloyd’s can help you address these challenges. But to leverage the advantages, you need to understand how the Lloyd’s placement mechanics actually work.

Lloyd’s of London: not an insurer, a specialist marketplace

Lloyd’s of London is best thought of as a platform or marketplace, where specialist underwriting syndicates (managed by Lloyd’s managing agents) accept risks brought in by Lloyd’s brokers, or bound by coverholders under delegated authority. Much of the capital is deployed on a subscription basis (multiple participants sharing one risk).

When you place a risk at Lloyd’s, you’re typically tapping into a range of benefits:

• specialist syndicate expertise across niche and complex lines.
• flexible structures, including single carrier, layered placements, shared lines, blended Lloyd’s and ‘company market’ (non-Lloyd’s insurers).
• the ability to build a tailored solution by assembling the right set of markets around one contract.

Lloyd’s describes its market as having an unrivalled concentration of specialist underwriting expertise, and a structure that supports innovation and speed.

Understanding the risk placement process at Lloyd’s

If you have an insurance risk to cover that will be hard to place within standard domestic markets, Lloyd’s may enable the ideal solution. At its simplest, the Lloyd’s workflow looks like this:

1. You bring the risk to a Lloyd’s-approved broker (such as Costero Brokers). Lloyd’s expects business to come into its market through registered Lloyd’s brokers (or, in some cases, via coverholders operating under delegated authority).
2. The Lloyd’s-approved broker prepares the ‘slip’. The slip is the deal summary: the key facts, coverage intent, limits, deductibles, pricing approach, and the main terms everyone is being asked to accept. In the modern London Market, the slip is commonly aligned to the Market Reform Contract (MRC) structure – essentially a standardised way of presenting the contract so all parties can agree terms clearly and consistently.
3. A lead underwriter sets the terms. The Lloyd’s-approved broker will usually approach a specialist underwriter to act as the lead (also called the slip leader). The lead is the underwriter responsible for setting the terms on a contract that will be shared by more than one syndicate.

5. ‘Follow’ markets subscribe their share. Once the lead terms are set, other syndicates (and sometimes non-Lloyd’s ‘company-market’ insurers) decide whether to ‘follow’ – to join in on those same terms, taking a percentage each. That’s the “subscription market” in action – multiple participants subscribing to one contract.
6. The placement is bound and documented. When the required line is filled (i.e. participation reaches 100% of the risk), the contract can be bound and processed for downstream steps like premium collection, data reporting / bordereaux (if relevant), and claims arrangements.

Discover more about how the Lloyd’s market works.

Slips: the documents at the heart of Lloyd’s risk placement

Think of the slip as the ‘executive summary’ and commercial core of the deal. It’s where you make it easy for Lloyd’s market participants to say “yes” (or to propose changes quickly).

When prepared correctly, a good slip will:

• Tell a clear underwriting story (what’s being insured, and why it makes sense).
• Highlight what matters (loss history, controls, exposure drivers).
• Make the ‘ask’ explicit (limit, attachment, period, pricing, key clauses).
• Remove ambiguity (so nobody needs to interpret your intent later).

The slip captures the commercial intent and agreed terms — and those terms then flow into the formal contract documentation.

In practice, slips are also designed to support operational processing – which is why structured formats like the MRC are used.

Lead and follow markets: who decides what?

The lead underwriter is the market’s “point of view” on the deal. They negotiate wording and pricing with a Lloyd’s-approved broker, and once their terms are set, the broker takes those terms to the rest of the market.

The follow markets then decide:

• Do we agree with the lead terms?
• If “yes”, what percentage line will we take?

Importantly, the lead is not just ‘first in line’ – they’re the one doing the heavy lifting on negotiations and technical shape. The lead sets terms; others choose whether to follow.

This approach is a big part of why Lloyd’s can move quickly on specialist risks. You’re usually not re-negotiating the same contract ten times – you’re building consensus around a single set of lead terms.

Subscription signing: how one risk gets shared across multiple syndicates

In a subscription placement, multiple Lloyd’s syndicates each take a percentage of the overall risk. Each participant takes their percentage of the same contract, on the same core terms set by the lead.

A simplified example might be:

• Lead syndicate A takes 35%
• Follow syndicate B takes 25%
• Follow syndicate C takes 20%
• Follow syndicate D takes 20%

Together that’s 100% of the risk, all on the same slip terms. The Lloyd’s market calls each syndicate’s share a ‘line’ – the proportion of the risk they accept.

This sharing of the risk across multiple syndicates brings several advantages, enabling you to:

• Build large limits by combining multiple appetites.
• Reduce single-carrier dependency.
• Mix specialist expertise (for example, pairing a cyber lead with a tech E&O follower, or blending property-cat appetite with parametric capacity).

Endorsements: how you change the contract after inception

Real life happens mid-term – values change, locations shift, acquisitions happen, clauses need tightening, or the insured wants an extension.

At Lloyd’s, the mechanism for doing this properly is an ‘endorsement’ – an addition to the policy wording that changes the contract terms.

In a subscription market, that raises a practical question: Do you need every participating underwriter to re-approve every change? Sometimes the answer may be “yes” – but often, certain changes can be agreed under lead-underwriter authority (within defined limits), so you don’t have to chase every follower for every minor amendment. The advantage of this is control: you want contract changes to be fast and properly evidenced.

Line slips (and other “faster ways” of placing multiple risks)

Not every placement is one-off. If you’re an MGA or a broker placing lots of similar risks, you’ll often look for repeatable structures that reduce friction.

At Lloyd’s, one of those tools is a line slip – a pre-agreed placing facility where multiple underwriters commit capacity in advance for a defined type of risk. A broker can then bind individual risks within agreed parameters, which speeds things up and reduces repeated negotiation. It’s often used for repeatable or high-volume placements where consistency and speed matter.

In simple terms: it’s a way to pre-agree a framework so multiple risks can be bound more efficiently, without re-negotiating everything from scratch every time. For MGAs and InsurTechs building scalable distribution, structures like this can make high-volume placement far more operationally scalable.

How Lloyd’s helps you build better insurance solutions

In summary, for brokers, insurers, MGAs and InsurTechs worldwide, Lloyd’s can be valuable because it gives you:

• Specialist capacity in one marketplace (especially for complex or unusual risks).
• Flexible structures (subscription, layered, blended markets, delegated authority).
• Speed to decision, when the risk story and slip are well-prepared.
• Global reach, where regulatory considerations are handled with discipline.
• Bespoke solutions: Lloyd’s is designed to solve problems that don’t fit standard products.

Why working with a Lloyd’s-approved broker is crucial

Understanding the mechanics of risk placement at Lloyd’s is one thing. Using them well – under time pressure, with real-world constraints – is another.

Working with a Lloyd’s-registered broker like Costero Brokers helps you build your success at Lloyd’s by:

• Translating your risk (or product concept) into a clear, compelling slip.
• Finding the right lead underwriter for your class and structure.
• Building efficient follow-market support to complete the line.
• Managing endorsements and mid-term changes without chaos.
• Advising on the practicalities of compliance and risk location expectations.
• Leveraging wider international markets when Lloyd’s isn’t the only answer.

The end goal is simple: you get the capacity you need, on terms that make sense, with documentation that won’t unravel later.

Your next step for Lloyd’s success

If you’re trying to place a tricky risk, scale a delegated authority proposition, or just want to sense-check whether Lloyd’s is the right home for a particular class or distribution model, Costero can help.

Get in touch with us at Costero Brokers to discuss your requirements and speak with our experts.

Explore the latest announcements from reinsurers on rate cuts and increased capacity – and what insights they provide into your insurance market outlook for 2026.

The January treaty reinsurance renewals are one of the few moments each year when the market shows its hand in public: which direction is pricing moving, where is capacity growing, and which terms are sticking.

In 2026, the message is clear. Conditions are continuing to soften, and buyers have more leverage.

The catch is that “cheaper” doesn’t automatically mean “better”. Working with a specialist London market broker like Costero Brokers helps you turn favourable market conditions into optimal outcomes: the right structure, the right wording, and the right capacity behind it.

Understanding the January reinsurance renewals

January 1^st is the biggest annual renewal date in reinsurance. Almost all global reinsurance contracts will renew during this period, across all classes of business and specialty lines.

Treaty reinsurance is the primary tool used by insurance companies to provide them with portfolio-level protection (both proportional and non-proportional) against earnings volatility. It helps them guard against and reduce the impact of market-wide events, and when speaking about Property D&F, this will usually mean large CAT events such as hurricanes.

Key insights from the 2026 treaty market.

The renewal reports and market commentary that come out in early January shape expectations for the year ahead, and the themes this year are:

• Rates are down significantly across most major specialty lines.
• Capacity is increasing through traditional sources, private equity, and soft-follow.
• Attachment/retention discipline is currently stable and is not yet seeing any significant change.
• Coverages being widened through flexibility on sublimits or extensions.
• (Re)insurers want growth, and willing to trade aggressively or enter new areas to achieve this.

This is exactly the intelligence you need if you’re deciding whether to buy a higher limit, expand your coverages, restructure your retentions or build a facility.

Why London matters more in 2026: flexibility and bespoke solutions

All this creates a tremendous opportunity around the London market in 2026. There has never been more capacity in London, and the market is more flexible than ever.

This is reflected not just in price, but in how deals are structured. The flexibility allows for more movement in deductibles, limits, conditions and coverages.

Carriers are having to compete aggressively just to protect their own positions, with many of them also offering new products to achieve growth. Sophisticated buyers can benefit from the market’s willingness to offer unique tailor-made solutions.

Accelerating due to the market conditions, is the growth of ‘soft follow capacity’; automatic capacity that will follow the lead underwriter’s terms with minimal to zero additional negotiation. This speeds up the placement process and maintains the competitive tension between existing and new carriers.

How Costero Brokers can help you in the 2026 insurance market

If you’re starting to see the 2026 market conditions as an opportunity, you’re not wrong. Costero Brokers can help you to:

• Translate the softening market not just into lower premiums but into a better programme for you and your clients.
• Access London and Lloyd’s capacity efficiently, especially where you need bespoke wordings, specialist appetites, or cross-class solutions.
• Create facilities that fit your requirements (bulking, non-bulking, line slips or binders).
• Present your risk so you’re treated as a “preferred client” and get the most out of the London market.

The overarching theme is that in 2026, pricing is moving in your favour. The best outcomes will go to buyers who show up prepared, use London intelligently, and treat structure as a strategic lever rather than a paperwork exercise. In all these areas, Costero Brokers can make all the difference to your success.

Take your next step in the 2026 insurance market

If you want to talk through what the 2026 treaty renewals mean for your business, whether that’s lowering cost, buying more cover, building a facility, or launching a new product, get in touch with Costero Brokers and speak to our team.

We’ll help you turn today’s market conditions into capacity and coverage that makes sense now, and into the future.

Contact our experts at Costero Brokers.

With 2025 drawing to a close, 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 – and into 2026.

The UK and Global Economy

• UK economy – Inflation is easing, but growth is fragile: Official data published in November showed UK CPI for October, with services still a key watchpoint. Against a backdrop of weak momentum, UK monthly GDP for October was reported as down 0.1%, reinforcing the “slow-growth” narrative that matters for exposure bases, credit conditions and litigation frequency assumptions. (Sources: ONS, Reuters)
• UK rates – BoE holds Bank Rate at 4%: In its November decision, the Bank of England’s MPC voted 5–4 to maintain Bank Rate at 4%. For insurers, the implications remain two-sided: higher yields continue to support investment income and discounting, while uncertainty around the path of rates and growth keeps pressure on reserving assumptions, asset-liability management and demand-sensitive lines. (Source: Bank of England)
• UK Autumn Budget – Stability, inflation impact, and a small IPT change to watch: The Chancellor delivered the much-anticipated Budget on 26 November. The OBR forecast that Budget measures would reduce CPI inflation by around 0.3 percentage points in 2026.” For insurers, easing inflation helps on claims-cost pressure at the margin (especially where wage/service inflation matters), but any boost is tempered by weak underlying growth and continued sensitivity to the rate path. Tax policy decisions were forecast to raise GBP £26.6 billion by 2030/31, keeping affordability and consumer/SME resilience front of mind for personal lines retention and SME purchasing behaviour. Finally, while the standard rate of Insurance Premium Tax (IPT) remains 12%, the Budget included a targeted change. IPT at 12% will apply to insurance on new vehicle leases through qualifying motor vehicle leasing schemes from July 2026, which may be relevant for fleet/leasing channels and affected customer cohorts. (Sources: HM Treasury, OBR, House of Lords, UK)
• US economy – Fed eases again, but signals a cautious path into 2026: In December, the Federal Reserve cut the federal funds target range to 3.50%–3.75%, citing a shift in the balance of risks and reiterating that further moves will depend on incoming data. For insurers and reinsurers, the message is still mixed. Easing policy can support economic activity and some lines’ exposure bases, while the level of rates remains meaningful for investment income, discounting, and (in long-tail classes) the interaction between rate-path assumptions and reserving. (Sources: Federal Reserve, Reuters).

Insurance Industry Developments

• Commercial pricing – Broad softening continues, with pockets of firmness: Indexes continue to show year-on-year declines in average commercial rates, with property and financial/professional lines generally softer than casualty for complex and loss-exposed accounts. The likely outcome is more choice of lead terms in many classes, but less flexibility where aggregation, nat cat, or severe loss potential dominates. (Source: Marsh)
• UK regulation – Capital reforms continue to open investment pathways (with guardrails): In October, the PRA finalised its Matching Adjustment Investment Accelerator (MAIA) framework, designed to reduce barriers to timely and capital-efficient insurer investment (while keeping prudential constraints). For life and annuity writers (and their reinsurers), this matters because asset strategy feeds directly into pricing competitiveness and demand for certain forms of funded reinsurance and capital solutions. (Source: Bank of England/PRA)

• London market positioning – Underwriting appetite and “licence to operate” debates continue: Lloyd’s leadership messaging in Q4 continued to emphasise the market’s “apolitical” stance and the breadth of risks it supports, including energy—an issue that continues to attract external scrutiny as ESG requirements diverge by jurisdiction. (Source: Financial Times)

Underwriting Performance

• US P&C results – Cat remains the swing factor: Major US carriers again highlighted that catastrophe and weather volatility continues to drive quarterly noise, even where underlying attritional performance improves. For buyers, this translates into continued underwriting focus on construction quality, secondary perils, and credible mitigation evidence at renewal. (Sources: Chubb, Travelers)
• Underwriting for cyber – benign market pricing vs. persistent systemic worry: A notable Q4 theme is the tension between continued softening in many cyber rate environments and concern about aggregation, contingent business interruption.(BI) and systemic events. High-profile incidents have produced significant claims, but not enough (yet) to re-harden the entire market. (Source: S&P Global)

Tech, Cyber and AI Developments

• UK cyber claims – Severity is rising: The UK industry reported GBP £197 million paid in cyber claims in 2024 (triple the prior year), with ransomware/malware featuring prominently in claim drivers. This is useful context for business leaders still treating cyber insurance as only an ‘optional extra’. (Source: ABI)
• AI security – ‘prompt injection’ is being treated as a structural risk, not a patchable bug: The UK NCSC warned that cyber attacks injecting malicious text prompts into AI systems may not be fully mitigable in the way the industry learned to mitigate classic SQL injection vulnerabilities. For insurers, this starts to matter in underwriting controls. Vendor security questionnaires, model governance, and insured AI-enabled workflow dependencies are becoming more material in cyber and PI submissions. (Sources: NCSC, TechRadar)
• EU AI Act – Obligations for general-purpose AI providers are now in application: The European Commission published guidance in October clarifying obligations for providers of general-purpose AI models under the AI Act. Even for non-EU headquartered firms, this is increasingly relevant through supply chains, contract clauses and product governance expectations. (Source: European Commission)

Reinsurance Market

• Renewals – Competitive conditions, with rate decreases discussed: Early December commentary from market participants pointed to reinsurance supply outpacing demand in several segments, with discussions of 10–15% decreases in some areas (notably where loss experience and attachment structure support it). As ever, outcomes remain granular – loss-affected programmes, trapped collateral issues and high-risk layers can behave very differently. (Source: Reinsurance News)
• ILS / Cat bonds – Record 2025 issuance keeps alternative capital central for peak perils: Catastrophe bonds continued to play a major role in reinsurance capacity as sponsors diversified away from purely traditional markets. By late November 2025, tracked 144A cat bond issuance had passed USD $20 billion for the year (with total settled issuance including private deals above that level), underlining sustained investor appetite and giving buyers another route to manage peak-peril aggregation and portfolio volatility. (Sources: Financial Times, Artemis, Aon Securities)

Natural Catastrophes

• Loss totals – Elevated insured losses remain a defining feature: Global insured losses for the first nine months of 2025 were estimated at around USD $105 billion, again dominated by weather-related events and underscoring the “high-frequency, high-severity” environment that’s shaping pricing, terms and aggregate management. (Source: Gallagher Re)
• Caribbean wind / floods – Hurricane highlights sovereign and private-sector recovery funding needs: After Hurricane Melissa struck Jamaica in October, resulting in losses estimated at USD $10 billion, the island nation secured up to USD $6.7 billion in international funding for reconstruction. Reports on the post-event funding package noted the very large damage estimates and the role for pre-arranged disaster-risk financing (including insurance mechanisms) in providing immediate liquidity. (Source: Reuters)
• US severe convective storms (SCS) – The secondary-peril discussion continues: Market reporting again pointed to very high US SCS loss activity, reinforcing why attachment points, deductibles, and granular exposure management are becoming central even outside traditional hurricane zones. (Source: Wall Street Journal)

Geopolitical Risks

• Marine war-risk – Premiums can move rapidly as threat perceptions shift: Black Sea war-risk premiums were being quoted around 0.6%–1% of vessel value for some calls in early December, with underwriters reviewing terms daily. For insureds, the operational effect of this uncertainty is not just hull/cargo cost – it’s also routing problems, delays, contractual penalties and contingent business interruption (BI). (Source: Reuters)
• Security as a regulatory theme: UK regulatory leadership messaging continues to stress that international geopolitical security considerations are increasingly intertwined with financial system resilience. This is relevant for sanctions compliance, supply-chain exposures, and the treatment of defence-related risks across insurance and capital markets. (Source: FCA)

Looking ahead: Market needs and insurance “gaps”

Below we highlight a few areas where demand is expected to outpace existing insurance solutions in 2026 and beyond – where product innovation, clearer wordings, and London-market backed structures will be critical.

• Power for AI and data centres – The SMR insurance opportunity: Electricity demand forecasts linked to data centres are growing, and recent reports highlight the scale of the challenge for power generation and grids. A favoured solution is locally distributed nuclear energy, in the form of small modular reactors (SMRs). As SMR investment moves from policy and financing into delivery, the insurance market will need to keep pace across construction, marine transit, operational all-risks, liability, environmental impairment, business interruption and (critically) integrated project risk across multi-year build programmes. There is a particular need for coherent, London-market backed placements that combine specialist engineering, nuclear and supply-chain expertise. (Sources: WTW, Reuters)
• Cyber systemic risk – Expanding coverage without expanding tail risk blindly: Claim severity signals and continued incident frequency sit awkwardly alongside a soft pricing environment. The likely gap is not “more cyber cover” in general, but better-structured cover: clearer contingent BI triggers, more explicit coverage for critical dependencies, and credible pathways to systemic risk-sharing (pooling/reinsurance/ILS) that don’t leave individual carriers holding unpriceable aggregation. (Sources: ABI, S&P Global)
• Climate adaptation and resilience finance – Narrowing the protection gap: With insured losses remaining elevated, there is increasing interest in parametric solutions, resilience-linked structures, and public-private mechanisms – especially for flood, heat and secondary perils where traditional indemnity approaches struggle to scale quickly. (Source: Gallagher Re)

Let’s discuss your way forward

As always, if you’d like to talk through what any of these themes mean for your 2026 placement strategy – whether you’re a broker, MGA, carrier, reinsurer or insurtech – we’re keen to discuss your goals and how we can help.

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.