How prices are changing
| Cost driver or rule | Value | Status |
|---|---|---|
| Commercial insurance in Europe (excluding the UK) | Rates in Q3 2026: −6% on average, year on year | Market data |
| Property insurance in Europe | Rates in Q3 2026: −9% on average | Market data |
| Liability, financial lines and cyber in Europe | Rates down; Marsh gives no figure for Europe | Market data |
| Worldwide | Rates −5% on average, the ninth consecutive quarter of falling rates | Market data |
| Insurance tax | 19% of the premium; fire and fire business interruption 22% (§ 6 VersStG) | in force |
| Construction prices for commercial operating buildings | +5.5% in August 2026, year on year | statistics |
- All servicesProducer prices
+3.7%
- Accounting servicesProducer prices
+6.0%
- Real estate brokerage and managementProducer prices
+5.4%
- Legal servicesProducer prices
+4.1%
- Administrative and support servicesProducer prices
+3.5%
- Engineering and technical consultancyProducer prices
+1.7%
In insurance, the market is softening; among service providers, prices are rising. Commercial insurance rates in Europe fell by an average of 6% in Q3 2026. Producer prices for services in Q2 2026 were 3.7% higher than a year earlier, 4.1% higher for legal services and 6.0% higher for accounting services. A premium that rises on renewal and an hourly rate that rises faster than the relevant index are both reasons to ask questions.
What makes up the price
The premium for a commercial insurance policy is calculated from the premium rate and the rating basis. Depending on the line of insurance, the basis is, for example, the sum insured for property, revenue or payroll for liability, the number and type of vehicles for fleet, and the value of goods for transport. Risk and claims history determine the rate; a higher deductible lowers it. This also applies to cyber and D&O. Insurance tax is added to the premium. If your broker works on commission, that commission is included in the premium.
Consulting, auditing and administration are billed at hourly or daily rates per staff grade, as a flat fee or as a mix of both, plus travel and incidental expenses. Anything not in the service specification can be billed as an additional service.
Which index to use
For adjusting sums insured on buildings: the construction price index of the Statistisches Bundesamt (Destatis), and for operating buildings, the series for commercial operating buildings. For consulting, auditing and administration: producer prices for services (statistic 61311) in the relevant sub-index, such as legal services or accounting services. For the insurance market situation: Marsh’s Global Insurance Market Index, published quarterly.
Six points where insurance and service contracts cost money
- Deductible too low for the claims history. If you have reported hardly any claims for years, a low deductible means you are paying for small losses you could bear yourself. Have your broker obtain quotes with higher deductibles and compare the premium savings with your claims over the past few years.
- Automatic sum insured adjustment without review. If the sum insured rises with an index every year, the premium rises with it. Construction prices for commercial operating buildings were 5.5% higher in August 2026 than a year earlier. Review annually with your broker whether the sums insured and the index still match your buildings, equipment and stock, for example after a sale, a closure or a relocation.
- Commission not disclosed. If your broker works on commission, the insurer pays it out of your premium. Ask about the type and amount of remuneration for each policy. Only then can you see which part of the premium covers the risk and which part pays for distribution.
- Tacit renewal. If the contract contains a renewal clause and you miss the notice period, it continues to run. Under § 11 VVG (German Insurance Contract Act), a renewal agreed in advance is invalid insofar as each renewal exceeds one year. You can terminate contracts with a term of more than three years at the end of the third or any subsequent year by giving three months’ notice. These limits do not apply to large risks and open covers (§ 210 VVG). Keep a calendar of deadlines and negotiate before the notice period expires.
- Service providers paid by the hour with no cap. If you pay for consulting, auditing or administration purely on a time-spent basis, you bear the entire volume risk. Agree caps per engagement, flat fees for recurring services and a sign-off before the budget is exceeded.
- Scope of services without KPIs. Without a service specification that includes KPIs, you pay the same price for any level of quality. Stipulate what will be delivered, by when and to what quality, for example processing times in administration or deadlines for closing and reporting, and what applies in the event of delay.
Before you renew or agree to an increase
Ask your broker and your service providers in writing:
- How have the premium, sum insured and deductible for each policy developed over the last three years?
- Which index is the sum insured adjustment linked to, and when were the sums insured last reviewed?
- How, and how much, are you paid for each policy?
- When do our contracts expire, and what notice periods apply?
- What hourly rates, flat fees and caps apply to consulting, auditing and administration, and which services does the price cover?
For the review, you need: the insurance policies with their conditions and endorsements, the premium invoices and the claims list for the last five years, the service contracts with their service specifications, and the invoices for the last twelve months.
How we renegotiate insurance and services
Anyone who brokers insurance or advises on insurance on a commercial basis generally needs a licence from the chamber of industry and commerce under § 34d(1) and (2) GewO (German Trade Regulation Act). Konditionswerk does not broker insurance or advise on it. We review costs and terms and prepare the negotiation. The negotiation itself is conducted through your broker or a licensed insurance consultant, who assesses whether the cover and policy conditions suit your risk.
For consulting, auditing and administration, we analyse the invoices and records of work performed over the last twelve months and negotiate rates, flat fees, caps and KPIs. We do not provide legal advice (§ 3 RDG, German Legal Services Act). Legal questions are a matter for your legal department or your lawyer. Our senior negotiators handle large contracts in person, together with your buyer. We handle the many small contracts in a standardised, software-supported way, according to your rules. You approve every deal.
Frequently asked questions about insurance and service providers
Are commercial insurance premiums falling?
On average, yes. According to the Marsh Global Insurance Market Index, commercial insurance rates in Europe fell by 6% in Q3 2026, and property insurance rates by 9%. Worldwide, it was the ninth consecutive quarter of falling rates. How much of this reaches you depends on your risk, claims history and negotiation.
What is the rate of insurance tax?
19% of the premium, or 22% for fire insurance and fire business interruption insurance (§ 6 VersStG, German Insurance Tax Act). The tax itself is not negotiable. It only falls with the premium on which it is levied.
Does Konditionswerk broker or advise on insurance?
No. Both require a licence under § 34d GewO. We review costs and terms and prepare the negotiation. It is conducted through your broker or a licensed insurance consultant.
What should we measure price increases by consultants and auditors against?
Against the producer prices for services from the Statistisches Bundesamt (Destatis), in the relevant sub-index. In Q2 2026, legal services were 4.1% and accounting services 6.0% above the same quarter of the previous year. Also compare the hours charged per service over several years.
Sources
- Marsh: Global Insurance Market Index for Q3 2026, press release of 21 October 2026
- § 6 Versicherungsteuergesetz (Insurance Tax Act)
- Statistisches Bundesamt (Destatis): construction prices in August 2026, press release of 9 October 2026
- Statistisches Bundesamt (Destatis): producer prices for services in Q2 2026, press release of 18 September 2026
- § 11 Versicherungsvertragsgesetz (Insurance Contract Act)
- § 210 Versicherungsvertragsgesetz
- § 34d Gewerbeordnung (Trade Regulation Act)
- § 3 Rechtsdienstleistungsgesetz (Legal Services Act)
