Global insurance market conditions continue to moderate: Aon
Reprints
Global insurance market conditions continued to moderate in the third quarter overall, as insurers looked to balance growth with profitability, Aon PLC said Friday in a report.
Favored and well-performing risks, including significant portions of the financial lines market, saw an expansion of underwriting appetite and an increase in available capacity, Aon said in its quarterly Global Market Insights report.
Higher-risk industries, natural catastrophe-exposed risks, loss-impacted risks and those not demonstrating mature risk management practices saw the most significant rate increases and capacity constraints in the quarter, Aon said.
This was largely driven by natural catastrophe volatility, a challenging early-2023 reinsurance market and rising legal settlement and awards, including so-called nuclear verdicts, Aon said.
Property market challenges continued, with persistent rate increases, valuation scrutiny and capacity contractions largely driven by reinsurance costs and natural catastrophe concerns, Aon said.
“Property risks remained constrained – and expensive – driving continued use of alternative solutions, including index-based products, self-insurance and captives,” Aon said in the report.
Auto and casualty rates were pressured by adverse claims, while cyber and directors and officers liability risks experienced a softening market, Aon said.
In North America, rates rose modestly, and established insurers expanded their appetite and capacity in well-performing segments, Aon said.
Climate change remained a key insurer concern and risks in natural catastrophe-exposed geographies and higher-risk industries saw the “most acute and significant market challenges,” Aon said.
