Aon’s recently released Q3 Global Insurance Market Insights report highlighted the trends that currently shape the insurance landscape in the UK and globally. The latest update indicates an increase in competition across insurance lines, with increased capacity and disciplined underwriting creating favourable conditions for businesses and policyholders alike.
Aon’s findings show that rates across most UK insurance lines are softening, driven by both new market entrants and increased appetite from established insurers. This shift is attributed to strong insurer results, which have amplified competition, and a mounting emphasis on flexibility in premium and capacity rather than coverage or retentions.
Aon’s CEO of commercial risk Joe Peiser noted: “Buyer-friendly conditions have continued across much of the global insurance market and even picked up pace in some segments.”
The report highlighted the increase in competition in the property sector. It noted that businesses benefit from oversubscribed property placements, with many opting to restructure their coverage layers to optimise costs and capacity.
Price reductions have been observed in the market, particularly in cyber and directors and officers (D&O) insurance, as insurers compete for business and adjust to evolving risk profiles. Cyber insurance, in particular, saw significant price reductions, while claims such as those stemming from the recent CrowdStrike outage, are expected to have a manageable impact on insurer appetite.
According to the report, the increase in available capital in the insurance market allows for broader underwriting flexibility, enabling insurers to offer better terms to clients with high-quality risks and strong performance. Aon underscored enhanced local autonomy in underwriting as a trend, with more decisions made without the need for head office involvement.
Additionally, some companies are taking advantage of expiring deductibles and, in cases like cyber insurance, are purchasing higher limits to account for inflation-driven increases in property values. As more favourable conditions emerge, Aon anticipates a gradual broadening of coverages, particularly in the cyber and D&O sectors, to meet evolving client needs.
Globally, Aon’s report points to renewed confidence among insurers, spurred by improved returns and favourable reinsurance conditions. This trend is expected to lead to competitive pricing, improved terms, and positive end-of-year renewal results. While Hurricane Milton’s impact is still under evaluation, preliminary estimates indicate a manageable economic loss between $25 billion and $40 billion. In the US, however, social inflation continues to drive up liability claims, particularly in tort-exposed lines.
The report indicates that the commercial automobile market is experiencing rising rates due to inflation and supply chain pressures, while casualty and liability markets are modestly decreasing in price as new players drive competitiveness. Meanwhile, underwriters remain focused on quality risks, particularly for US exposures, as PFAS exclusions become more standard.
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