Insurers in the United Kingdom continued to operate in a buyer-favourable environment through the fourth quarter of 2024, according to Aon’s latest Q4 Global Insurance Market Insights report.
Pricing trends showed declines across several key lines, with cyber, directors & officers (D&O), and property leading in rate reductions. Casualty followed with more modest decreases, while automobile was the exception, continuing to experience rate increases, though at a slowing pace.
The report found that insurer appetite for growth and profitability stability contributed to an environment where capacity remained sufficient across most lines. However, challenges persisted in sectors exposed to US risk, especially in property and casualty with natural catastrophe exposure and US litigation trends.
Rob Kemp, head of commercial risk at Aon UK, said that 2024 saw pricing pressure across major insurance products, with competition and availability of cover improving.
"Return to insurer profitability combined with the emergence of wide scale insurer growth plans have been key catalysts of this change,” said Kemp.
Underwriting remained flexible for well-performing risks, particularly in cyber, D&O, and property. Limits continued to increase in these areas and were often maintained at expiring levels in renewals. In some placements, insurers provided opportunities to reduce retentions, especially where changes in terms did not affect premiums.
Most placements retained existing coverage terms, though Aon noted enhancements in some cyber and D&O policies. In contrast, scrutiny intensified in casualty for PFAS exposures and US automobile risks.
The report also pointed out that natural catastrophe risks, strike and riot coverage, and customer and supplier-specific extensions remained areas of careful review in property underwriting.
Global market movements followed similar trends. Property capacity expanded, with underwriters showing greater flexibility for preferred risks. Cyber and D&O pricing continued to ease, though there were signs of price stabilisation in D&O due to insurer focus on sustainable returns.
The casualty segment remained mixed; while some pricing relief appeared, US-exposed risks continued to face difficult conditions due to litigation funding, nuclear verdicts, and legal trends.
In cyber, insurer selection is becoming increasingly important. Aon noted that access to its proprietary facilities has supported clients in securing coverage, including for cyber-related property damage.
Looking ahead, buyer-oriented trends are expected to continue into 2025, depending on reinsurance treaty outcomes and loss activity across the industry.
Do you see these developments as a lasting trend, or are further shifts in pricing and coverage ahead? Share your insights in the comments.
