Pricing, capacity improving for E&O/cyber buyers
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Pricing and capacity are beginning to improve for errors & omissions and cyber insurance buyers, says Aon PLC in a report issued Wednesday.
Although insurers continue to stress “conservative messaging” regarding pricing, underwriting scrutiny and coverage, and pricing remains significantly higher than in the same period in 2020, renewal increases are declining, the report says, and about $50 million in new excess capacity is available from new insurers entering the E&O/cyber market.
The report says some clients are experiencing flat to declining rates in cases where there were “overcorrections” in 2021.
It says coverage continues to be reviewed for war exclusions, territory restrictions, systemic risk and ancillary coverages such as media and cybercrime or theft.
“The conflict in Ukraine is commonly top of mind for insurers, both with how they amend the risk to any given businesses, and how global response to those events may impact insurer compliance,” the report says.
