Price hikes continue in Q1: Aon
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U.S. insurance rate increases continued in the first quarter as markets remained “challenging” even as the upward momentum slowed among some lines, Aon PLC said Friday.
“There are signs that more moderate conditions may be emerging. But for now, price increases continue,” Aon said, adding there is pressure on limits and retentions.
In large and complex client placements, rates for cyber coverage showed first-quarter increases of 30% or more while most lines from automobile and aviation to surety and trade credit showed increases of either 1% to 10% or 11% to 30%, Aon data showed. Only products liability coverage registered as flat.
Figures for small to mid-sized client placements were largely similar, with cyber rates leading the way up with increases of 30% or more and products liability the only flat line.
Timelines have also grown as “insurer information requests have become more detailed and onerous, and decision times have extended,” Aon said.
Reinsurance markets may pressure primary lines as the tightening of terms and conditions will “inevitably pass down to client placements” even though Jan. 1 treaty renewals were more favorable for insurers than expected.
In its global perspective, Aon said new capacity continues to flow into the market and COVID-19 losses “have not materialized as expected.”
More insurance and risk management news on the coronavirus crisis here.
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