Q1 2026: Global Insurance Market Overview

Q1 2026: Global Insurance Market Overview
April 20, 2024 27 mins

Q1 2026: Global Insurance Market Overview

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Buyer‑friendly conditions continued into Q1, with abundant capacity and strong competition supporting price reductions and expanded coverage opportunities across most major lines, notably property, cyber, and directors and officers.

Key Takeaways
  1. Supported by strong insurer performance in 2025 and a favorable 1/1 treaty renewal season, the global commercial insurance market remained broadly soft and competitive in Q1 2026.
  2. Climate change, fragile global supply chains, increasingly sophisticated cyber threats and escalating geopolitical tensions – particularly in the Middle East – are reshaping the risk landscape.
  3. Keeping business continuity plans current, reviewing exposures and coverages, and strengthening risk transfer strategies is essential in today’s environment.

Beneath the Surface: Product, Geography and Risk Type Matter

Behind broadly buyer-friendly market conditions, the reality is more nuanced. The Middle East conflict is already affecting multiple lines, including marine, aviation, cyber, political violence, trade credit, property and financial lines.

In property, for example, overall conditions remain soft, but underwriting focus has sharpened around operational disruption, particularly for organizations with operations in the Middle East or which are otherwise affected by the conflict. Insurers are paying closer attention to territorial definitions, sanctions language, hours clauses and extensions related to contingent business interruption.

Financial lines underwriters, navigating increased claims activity, poor loss development and rising risk complexity, are applying additional underwriting scrutiny to governance standards, disclosures practices and business continuity protocols to ensure rates are appropriate.

Beyond geopolitical developments, other structural pressures are reshaping capacity and appetite. In the auto market, loss severity continues to rise, driven by inflation, parts shortages and increasingly complex vehicle technology. This is resulting in rate increases and a contraction of appetite, particularly for large fleets, public transport operators and risks with substantial hired, non-owned or contingent exposures.

Casualty conditions remain challenging for U.S.-exposed risks. While there are early signs of tort reform in certain U.S. jurisdictions, capacity for U.S.-exposed risks remains constrained as insurers respond to social inflation, nuclear verdicts, litigation funding and increasingly aggressive plaintiff strategies.

Taken together, these dynamics point to a 2026 market that cannot be understood through broad market trends alone. Outcomes are increasingly determined by specific risk characteristics – what is being insured, in which industry and where.

Geopolitical Risk: Adding Complexity and Uncertainty

The ongoing conflict in the Middle East continues to have far-reaching implications, not only humanitarian but also economic, financial, and operational. Insurer responses are, in some cases, as fluid as the situation itself. At the time of writing, insurers are actively reassessing exposures and selectively recalibrating based on cross-class accumulation and aggregation concerns.

Underwriting scrutiny has intensified, placement timelines are extending, and coverage and pricing positions are being reviewed and adjusted at speed as claims scenarios shift. In many instances, insurance markets are acting as an early warning signal, often well ahead of capital market reactions or observable operational disruption, making early engagement with insurers and brokers increasingly important.

As this conflict continues to unfold, organizations should expect ongoing shifts in wordings, pricing, capacity, appetite and claims positions. Clients are encouraged to take a proactive, enterprise-wide approach:

  • Map exposures beyond physical location, accounting for where disruption may cascade
  • Review contracts and sanctions implications
  • Stress-test supply chains
  • Re-evaluate risk transfer structures and policy terms
  • Test coverage assumptions
  • Ensure business continuity, disaster recovery, emergency decision-making, and communications plans are current, robust and integrated.

“Now is the time to test assumptions, before events force the issue.” says Joe Peiser, CEO, Risk Capital. “Periods like these can expose assumptions that haven’t been stress tested: how policies respond under geopolitical pressure, where coverage ends and balance sheets begin, and whether alternative structures are needed to preserve resilience. The organizations best positioned to navigate uncertainty are those that challenge these assumptions early, while options are still available. We will continue to keep clients informed as conditions evolve.”

Rethinking Risk Transfer: From Cost Center to Competitive Advantage

Despite risk volatility and market complexities, the first quarter continued to offer buyers meaningful choice. Capacity remains available across a broader, but more precisely targeted, set of risk transfer options, with greater scope to negotiate program enhancements, not just pricing.

While growth remains a priority for many insurers, several have sharpened their risk selection. Underwriting appetite is increasingly aligned to risks that demonstrate strong controls, credible resilience strategies and high-quality data. This is especially evident for organizations with exposure to geopolitical hotspots or fragile supply chains, where clarity of risk narrative has become a decisive differentiator.

For buyers, this creates a multi-dimensional strategic challenge. The starting point is a clear articulation of risk appetite and risk tolerance. Whether or not they operate a captive, organizations are effectively the first-line underwriters of their own risk. They need a precise understanding of what they are retaining, what they are transferring, and why.

From there, the current market should be treated as a finite window to secure durable program improvements, not simply short-term premium relief. Savings can and should be reinvested to strengthen the underlying risk profile. One practical approach is the use of a “risk bursary,” where a portion of premium is allocated to risk improvement initiatives and advisory services, delivering resilience benefits at relatively low marginal cost.

Technology also plays a critical role. Digital and AI-enabled risk assessment tools, such as Aon's Risk Analyzer Suite, allow buyers to quantify, evidence and differentiate their risk more effectively, supporting better program design and stronger underwriting outcomes.

“Organizations should take concrete steps now to improve resilience.” says Cynthia Beveridge, Global Chief Broking Officer, Commercial Risk Solutions. “Use analytics to stress-test your program design, map your risk to your coverage and explore alternatives such as parametric solutions, captives and multi-year structures. Acting now will help ensure you are well positioned when market conditions inevitably tighten.”

Finally, as we look to the intermediate future, we think the massive construction plans for data centers and other digital infrastructure across the globe, to provide compute power for Artificial Intelligence, will be a significant market factor. The traditional market is currently insufficient to meet planned risk transfer demands. This looming disequilibrium could cause insurers to reconsider their soft market strategies. However, new, alternative capital is eyeing entry into our market which could expand supply. Exactly how this boom in digital infrastructure will impact the insurance market remains to be seen, but we expect it will be a significant discussion point in future market reports.

Navigating Dual Realities in 2026

The insurance market enters 2026 with clear tailwinds for buyers, but on a runway that could narrow quickly as geopolitical dynamics, loss trends, and capital flows evolve.

This Q1 2026 Global Insurance Market Insights report is designed to help you navigate that dual reality: a market that currently offers flexibility and choice, yet is increasingly more interconnected, technical and nuanced. The report brings together our latest perspectives on pricing, capacity, underwriting and product developments across regions and major lines, alongside early insights from the Middle East conflict and its implications for coverage and claims.

On behalf of our global Commercial Risk team, we hope this report supports you as you refine your risk strategy for the year ahead. We will continue to update our analysis as conditions evolve and stand ready to help you adjust course, protecting against emerging risks while capturing the opportunities this market still presents.

Quote icon

Now is the time to take concrete steps to improve resilience. Clients who act now will be better positioned when market conditions inevitably tighten.

Joe Peiser
Joe Peiser
Chief Executive Officer, Commercial Risk Solutions

Insurance Market Overview

Expand the options below to read a summary of how the insurance market trended in Q1 2026 across pricing, capacity, underwriting, limits, deductibles and coverages.

  Pricing Capacity Underwriting Limits Deductibles Coverages
Asia -1-10% Abundant Flexible Increased Flat Stable
EMEA -1-10% Abundant Flexible Flat Flat Stable
Latin America -11-20% Abundant Flexible Flat Flat Stable
North America Flat Ample Prudent Flat Flat Stable
Pacific -11-20% Abundant Flexible Increased Flat Broader
  • Pricing

    Increased capacity and heightened competition are driving price reductions across most geographies and lines of business, with several markets, including large account U.S. property, experiencing double-digit decreases. Some insurers are offering long-term agreements for select risks, allowing buyers to lock in current favorable pricing. There are, however, signs of price moderation: rate reductions have slowed or flattened across several lines and markets, most notably, in directors and officers (D&O), but also in cyber. In contrast to the broader softness, certain lines have remained firm: in response to adverse claims trends, automobile and U.S.-exposed casualty insurers have continued to seek rate increases, albeit mostly modest. Japan is a notable geographical outlier as insurers continue to focus on improved pricing driven largely by a more stringent regulatory environment.

  • Capacity

    Capacity is abundant overall, driven by strong insurer profitability and favorable reinsurance conditions following the 1/1 renewals. Competition is intense as incumbent insurers and newer players seek to retain business and achieve ambitious growth targets, particularly in property and non-U.S. exposed casualty. Many large risks are also experiencing increasing competition from international insurers, notably the London market. Insurers are increasingly looking to write larger line sizes while also showing greater willingness to deploy capacity for complex and higher-hazard risks when supported by robust underwriting information. Despite abundant capacity in the market overall, capacity remains more constrained for U.S.-exposed casualty risks and some commercial automobile risks, as well as property and casualty risks in Japan.

  • Underwriting

    Amidst a strongly competitive environment, underwriting is generally flexible. Insurers are increasingly accommodating on terms and conditions and willing to offer increased limits and enhanced coverages to differentiate themselves. While more flexible, underwriting discipline remains intact, with appetite and pricing reflective of the risk. Superior terms are available where the insured can evidence a strong risk management culture and continued investment in loss prevention as part of a robust underwriting submission. Underwriting remains rigorous for more challenging areas, such as U.S.-exposed casualty and automobile, as well as higher-hazard, loss-impacted and natural catastrophe exposed risks. In addition, regulatory changes in Japan and China are leading to more rigorous underwriting for property and casualty risks.

  • Limits

    Insurers are increasingly willing to offer higher policy limits and sub-limits, especially for well-managed risks in property, cyber, directors and officers, and select casualty markets. Many clients are taking advantage of favorable conditions to restore limits reduced in the preceding hard market and increase limits to better reflect exposures based on insights gained from analytics and modelling tools. For U.S. casualty, automobile and certain property catastrophe risks, insurers are more conservative when providing high limits and, in some cases, are actively looking to reduce their exposure. In Japan, limits continue to decrease for large property & casualty risks.

  • Deductibles

    Most placements are renewing with expiring deductibles, although insurers may be willing to offer decreases for well-performing products and risk types. Deductibles are under pressure for lines with adverse loss trends, such as automobile and U.S. excess casualty. Clients analyzing their total cost of risk are exploring potential deductible increases, while those with highly exposed risks or poor loss ratios are increasingly exploring alternative solutions.

  • Coverages

    Most placements are renewing with expiring coverages, although broader coverages and enhancements are increasingly available across competitive lines of business including property, cyber and directors and officers. There are also opportunities to leverage market conditions to restore coverages and sub-limits reduced during the hard market and/or to obtain broader coverage for growing climate, cyber and supply chain risks. Innovations are under development in the cyber insurance market to respond to evolving exposures and business operations – including affirmative coverage for AI threats and supply chain covers. Restrictions, however, continue to apply in the casualty market for per- and polyfluoroalkyl substances and data privacy, while catastrophe-exposed property placements in the Middle East are also facing limitations. In Mexico, the recent crackdown on drug trafficking is expected to lead to a tightening of coverage for strikes, civil commotion and riot covers.

Insurance Product Trends

Expand the options below to read a summary of how the insurance market trended in Q1 2026 across key lines of business, including Automobile, Casualty/Liability, Cyber, Directors & Officers and Property.

  Automobile Casualty/Liability Cyber Directors & Officers Property
Asia Moderate Soft Soft Soft Soft
EMEA Moderate Soft Soft Soft Soft
Latin America Soft Soft Soft Soft Soft
North America Moderate Moderate Soft Moderate Soft
Pacific Moderate Soft Soft Soft Soft
  • Automobile

    The Automobile insurance market is generally moderate to challenging, and reflective of elevated repair costs and higher values for new and electric vehicles. Conditions are more challenging in several European markets, where capacity is constrained and underwriting remains rigorous. Pricing has continued to increase in the U.S., Australia, Korea, Singapore and Japan, as well as in France, Italy, Iberia and the Netherlands. However, a growing number of markets are now experiencing flat or slightly decreasing rates. Well-managed risks with a favorable loss history are able to secure superior terms, particularly where robust fleet risk management, training and driver vetting are evidenced. By contrast, public transport operators, trucking companies and hire/leasing fleets are facing more challenging conditions.

  • Casualty

    Conditions are buyer-friendly in most markets, with the notable exceptions of U.S. general liability and umbrella liability. Across much of the market, capacity is sufficient for most risks and modest price reductions are available from growth-focused casualty insurers. U.S. exposures have continued to face underwriting scrutiny and potential capacity constraints, coverage and limit restrictions, and higher pricing. In response, some clients with large U.S. exposures are exploring adjustments to retentions and limits, as well as fronting and captive solutions, to achieve pricing and program stabilization. Restrictions for per- and polyfluoroalkyl substances apply in almost all markets. Workers’ compensation insurance continues to experience modest decreases, although underwriters are carefully monitoring premium adequacy against a backdrop of deteriorating severity trends.

  • Cyber

    The market remains generally soft, but price reductions are beginning to moderate following a prolonged period of softness and continued adverse development on prior-year claims. Claims frequency also continues to rise, while AI, systemic and third-party/supply chain risks remain in sharp focus for underwriters. Most clients are benefiting from abundant capacity and strong competition, creating opportunities to expand coverage terms and conditions, increase limits, and in some cases reduce deductibles. Underwriting is flexible, although critical infrastructure, and risks with high volumes of sensitive information and a history of claims, such as healthcare, education, airlines and hospitality, face scrutiny. Risk quality remains critical and where minimum security standards are not met, capacity is limited.

  • Directors & Officers

    The directors and officers market remains soft with abundant capacity and price reductions available for most risks. However, pricing has continued to moderate following a prolonged period of soft market conditions amidst increasing exposures. In the U.S. pricing is now flat, with firming in certain subsectors of healthcare and technology that have experienced greater claims frequency and severity. Buyer-friendly conditions are creating opportunities to enhance coverages and increase limits. Underwriting is flexible, but non-U.S. placements with material U.S. exposure as well as insureds with weak financials or insolvency are subject to scrutiny. Insurers remain watchful of litigation trends, geopolitical and financial market volatility, cybersecurity and AI risks.

  • Property

    On the back of favorable 1/1 treaty reinsurance renewals, property insurers entered 2026 with strong balance sheets and ambitious growth targets, accelerating the ongoing softening of the global commercial property insurance market. Competition is particularly intense for well-performing, data-rich risks, with insurers expanding appetite and increasingly competing on both pricing and coverage. This has led to greater availability of capacity, higher limits, and broader terms and conditions, even extending into more complex and historically challenged occupancies. Despite these softer market dynamics, underwriting discipline remains intact. Insurers continue to prioritize risk selection and technical pricing, reflecting heightened concerns around climate-driven natural catastrophe activity, secondary perils, and evolving geopolitical risks. As a result, clients that demonstrate high-quality underwriting data, strong engineering, and robust risk management practices are consistently achieving the most favorable outcomes. Regional dynamics remain uneven. Japan stands out as a key exception, where constrained capacity, elevated catastrophe exposure and strict underwriting practices continue to drive double-digit rate increases and reduced available limits. In China, while the market remains competitive, recent regulatory developments are expected to support a shift toward more sophisticated underwriting approaches and increasingly risk-differentiated pricing over time.

    Despite softer market conditions, insureds continue to show strong interest in alternative risk transfer solutions as a strategic hedge against future market tightening. Many are using this favorable environment to educate themselves and implement scalable structures – such as parametric solutions, structured risk programs, and the strategic use of reinsurance through captives – to help mitigate volatility when market conditions shift.

Quote icon

Now is the time to take concrete steps to improve resilience.

Cynthia Beveridge
Cynthia Beveridge
Global Chief Broking Officer, Commercial Risk Solutions

Claims Trends

  • Iran Conflict: Triggering Global Price Shocks and Claims Activity

    As the Middle East conflict continues to dominate world news, its impact on communities, infrastructure and trade routes in Iran and the wider region is intensifying. The deep interdependencies in global supply chains are being keenly felt: disruption to the safe passage of vessels through the Strait of Hormuz has had a knock-on effect on oil prices and, in turn, to business continuity, driven by shortages of critical raw materials and sharply increased input costs. At the same time, governmental travel advisories are resulting in the cancellation of planned travel to certain countries.

    Against this backdrop, we are seeing claim notifications arising from both active claims and precautionary notices related to war / political violence, property damage, travel, and cyber, amongst other classes of business. Factors such as the underlying fact patterns, location of loss, causes of loss and policy wordings will be important as the situation unfolds and insurers review claims.

    We encourage clients to retain comprehensive documentation relating to any potential or actual claims, including evidence of mitigation measures, cancelled or delayed orders, contract variations, supplier and customer communications, and relevant invoices. It is also important to stay closely connected to Aon Claims teams who can help assess coverage, shape notification strategies and support you through the progression of potential or actual claims as the situation develops.

  • Signs of Early Tort Reform, But Defense Costs Still Rising

    U.S. nuclear verdicts in liability claims show few signs of abating; however, we are starting to see early positive signs of tort reform in certain U.S. states, and we are actively monitoring these developments. U.S. clients are encouraged to participate in lobbying forums to help counteract the significant activism of plaintiff law firms and to highlight the economic impacts of an over-litigious system. Concepts such as the “tort tax” – the implicit cost borne by residents in certain states due to legal system abuse* – as well as job loss and inflated insurance costs, can be powerful in these discussions*.

    At the same time, broader economic and market forces are affecting the cost of defending claims. Economic inflation and significant increases in lawyers’ fees, with hourly rates and overall defense costs rising considerably and outstripping inflation. Risk managers are encouraged to work with their Aon team to review their program design to ensure that defense costs sit outside policy limits, and to consider whether current policy limits remain adequate in this environment.

  • Claims Capability: From Cost Center to Differentiator

    Our Claims teams are experiencing a clear shift in client expectations, particularly among larger global firms that are facing increased claim complexity, a broader geographical footprint and tighter regulatory environments. These clients are demanding more from their insurance programs: greater support on claims, and specialized advice and solutions. In response, certain insurers are investing in stronger claims capabilities, including experienced claims specialists and digital infrastructures designed to deliver faster, more streamlined handling of attritional claims while ensuring more complex claims receive a more bespoke, hands-on approach. At the same time, clients may be more familiar with certain insurers and increasingly nuanced in their placement decision-making. This is driving an incremental but meaningful shift towards claims capability being weighed alongside price and coverage when selecting insurers – a trend we expect to continue.

    The challenge we face as an industry is resourcing within claims teams and the availability of top-flight expertise in certain business classes. Historic views of claims as a cost center have constrained investment and made it harder to attract and retain specialist talent. However, attitudes are changing, particularly in the London and U.S. markets, where the war on talent is fierce, and claims handling is increasingly recognized as a differentiator.

    With this in mind, we recommend that clients focus on claims capabilities before a loss occurs. Get to know your primary and lead insurers in advance; ask explicitly at the time of placement about their overall philosophy, structure, experience and authority levels within their claims team. Look for signals in your conversations – for example, whether an insurer proactively highlights its claims proposition, track record and service model – as these are good indicators of how a claim will be handled in practice.

Quote icon

Our Claims teams are experiencing a clear shift in client expectations, particularly among larger global firms that are facing increased claim complexity, a broader geographical footprint and tighter regulatory environments.

Mona Barnes
Mona Barnes
Global Chief Claims Officer, Commercial Risk Solutions

Insurance Market Trends by Region

Expand the options below to read a summary of regional insurance market trends from Q1 2026.

For more detailed analysis including claims trends, download and read the full report here [Pending PDF].

Asia

Positive Developments

  • Buyer friendly pricing continues, with strong 2025 results from insurers continuing to drive competition.
  • New entrants are increasing the opportunity for insureds to further diversify their insurer panels.
  • Long-term deals are increasingly available and offer insureds’ program stability over multiple years.

Challenging Developments 

  • Impacts of the Middle East conflict have been most pronounced for clients with Middle East trade routes, assets or accumulation.
  • Casualty capacity for U.S. exposures continues to tighten, driven by nuclear verdicts and social inflation.
  • Insurers remain watchful on natural catastrophe aggregations and are increasing their modelling to support capacity deployment.
Q1 Asia Market Dynamics
  Overall Pricing Capacity Underwriting Limits Deductibles Coverages
Asia Soft -1-10% Abundant Flexible Increased Flat Stable
China Soft -1-10% Abundant Prudent Increased Flat More Restrictive
Hong Kong Soft -11-20% Ample Prudent Flat Flat Stable
India Soft -21-30% Abundant Flexible Increased Flat Broader
Japan Challenging +1-10% Constrained Rigorous Decreased Flat More Restrictive
Korea Soft -1-10% Abundant Flexible Flat Flat Stable
Singapore Soft -1-10% Abundant Prudent Flat Flat Stable
Q1 Asia Product Trends
  Automobile Casualty/Liability Cyber Directors & Officers Property
Asia Moderate Soft Soft Soft Soft
China Moderate Soft Moderate Soft Soft
Hong Kong Soft Soft Soft Soft Soft
India Soft Soft Soft Soft Soft
Japan Moderate Challenging Moderate Moderate Challenging
Korea Moderate Soft Soft Soft Soft
Singapore Moderate Moderate Soft Soft Soft
Europe, Middle East and Africa

Positive Developments

  • Well-capitalized market is creating buyer friendly conditions including price reductions, across much of EMEA.
  • Insurers’ focus on growth is driving strong competition, enabling broader coverage and higher limits.
  • Increased use of data and analytics is supporting better risk transfer decisions.

Challenging Developments

  • The Middle East conflict is driving insurers to reassess their exposures and aggregate positions, tighten terms and appetite, and reduce limits and capacity, with war cover pricing increasing significantly.
  • Ongoing difficulty persists in specific segments where capacity is tighter and terms remain demanding.
  • Regulatory change and talent constraints are adding complexity and reinforcing the need for expert advice.
Q1 EMEA Market Dynamics
  Overall Pricing Capacity Underwriting Limits Deductibles Coverages
EMEA Soft -1-10% Abundant Flexible Flat Flat Stable
D-A-CH Soft -1-10% Abundant Prudent Flat Flat Stable
France Soft -11-20% Abundant Flexible Flat Flat Stable
Iberia Soft -1-10% Abundant Flexible Increased Flat Stable
Italy Moderate -1-10% Ample Prudent Flat Flat Stable
Middle East Soft -1-10% Abundant Flexible Flat Flat Stable
Netherlands Soft -1-10% Abundant Prudent Flat Flat Stable
Nordics Soft -1-10% Abundant Flexible Flat Flat Stable
South Africa Soft -1-10% Abundant Prudent Increased Flat Stable
Turkey Soft -11-20% Abundant Flexible Increased Decreased Broader
United Kingdom Soft -11-20% Abundant Flexible Increased Flat Broader
Q1 EMEA Product Trends
  Automobile Casualty/Liability Cyber Directors & Officers Property
EMEA Moderate Soft Soft Soft Soft
D-A-CH Moderate Soft Soft Soft Moderate
France Challenging Soft Soft Soft Soft
Iberia Challenging Soft Soft Soft Soft
Italy Challenging Soft Soft Soft Moderate
Middle East Soft Soft Soft Soft Soft
Netherlands Challenging Soft Soft Moderate Soft
Nordics N/A Soft Soft Soft Soft
South Africa Moderate Moderate Moderate Soft Soft
Turkey Moderate Soft Soft Soft Soft
United Kingdom Moderate Soft Soft Soft Soft
Latin America

Positive Developments

  • Major Latin American markets remain soft, with abundant capacity, aggressive reinsurance support and competitive pricing, especially for financial lines.
  • Embedded insurance and Insurtech solutions are gaining traction, with digital insurance policies accounting for 20% of new sales in Brazil.
  • Lack of significant catastrophic losses in 2025 is supporting favorable underwriting conditions, enabling the negotiation of broader coverages, higher limits, and stronger overall protection at competitive rates.

Challenging Developments

  • Insurers have adopted a targeted approach to addressing potential impacts from the Middle East conflict – taking action only on risks with direct exposures.
  • Mexico tax reform is impacting auto and health sectors, creating underwriting and pricing challenges, particularly for large fleets with poor loss experience.
  • Restrictions on U.S.-exposed products, completed operations, and cross-border work remain in place across casualty lines.
  • High-Risk industries like natural resources, mining, pharma, and complex industrial risks are facing more rigorous underwriting and capacity constraints.
Q1 Latin America Market Dynamics
  Overall Pricing Capacity Underwriting Limits Deductibles Coverages
Latin America Soft -11-20% Abundant Flexible Flat Flat Stable
Argentina Soft -1-10% Abundant Flexible Increased Flat Stable
Brazil Soft -11-20% Abundant Flexible Increased Flat Broader
Chile Soft -11-20% Ample Flexible Flat Flat Stable
Colombia Soft -11-20% Abundant Flexible Increased Flat Stable
Mexico Soft -1-10% Abundant Flexible Flat Flat Stable
Q3 Latin America Product Trends
  Automobile Casualty/Liability Cyber Directors & Officers Property
Latin America Soft Soft Soft Soft Soft
Argentina Soft Moderate Soft Soft Moderate
Brazil Soft Soft Soft Soft Soft
Chile Soft Soft Soft Soft Soft
Colombia Soft Soft Soft Soft Soft
Mexico Moderate Soft Soft Soft Soft
North America

Positive Developments

  • Favorable 1/1 reinsurance renewals are supporting broadly competitive conditions.
  • Intense competition is fueling double-digit reductions for U.S. property placements.
  • Advanced analytics are helping clients leverage abundant supply and secure enhanced terms.

Challenging Developments

  • No broad pricing, capacity or appetite changes from the Middle East conflict at this time but clients with direct exposures have been impacted.
  • D&O market continues to moderate after a prolonged soft market.
  • Cyber market is wary of adverse loss development and claims trends.
  • Capacity is under close watch amidst insurer consolidation.
Q1 North America Market Dynamics
  Overall Pricing Capacity Underwriting Limits Deductibles Coverages
North America Moderate Flat Ample Prudent Flat Flat Stable
Canada Soft -1-10% Ample Flexible Increased Flat Stable
United States Moderate Flat Ample Prudent Flat Flat Stable
Q1 North America Product Trends
  Automobile Casualty/Liability Cyber Directors & Officers Property
North America Moderate Flat Soft Moderate Soft
Canada Soft Soft Soft Soft Soft
United States Moderate Flat Soft Moderate Soft
Pacific

Positive Developments

  • Abundant capacity is fueling competitive market conditions.
  • Buyers are capitalizing on market conditions to restore lost limits and coverages.
  • Analytics tools are giving buyers greater clarity and confidence in program design.

Challenging Developments

  • Insurers in the Pacific continue to watch the Middle East conflict closely, with attention on supply chain disruption and the potential for renewed inflationary pressure on repair and replacement costs.
  • Underwriters remain prudent on natural catastrophe and U.S. casualty exposures.
  • Competitive cyber market warrants monitoring amidst continued losses and expanding threat landscape.
  • Claims inflation remains a concern for long tail classes.
Q1 Pacific Market Dynamics
  Overall Pricing Capacity Underwriting Limits Deductibles Coverages
Pacific Soft -11-20% Abundant Flexible Increased Flat Broader
Australia Soft -11-20% Abundant Flexible Increased Flat Broader
New Zealand Soft -1-10% Abundant Flexible Increased Flat Broader
Q3 Pacific Product Trends
  Automobile Casualty/Liability Cyber Directors & Officers Property
Pacific Moderate Soft Soft Soft Soft
Australia Moderate Soft Soft Soft Soft
New Zealand Soft Soft Soft Soft Soft

To see our full analysis of market conditions and our advice to clients, download the report here[Pending PDF].

General Disclaimer

The information contained herein and the statements expressed are of a general nature and are not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information and use sources we consider reliable, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

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With a changing climate, organizations in all sectors will need to protect their people and physical assets, reduce their carbon footprint, and invest in new solutions to thrive. Our Weather Collection provides you with critical insights to be prepared.

Workforce Resilience

Our Workforce Resilience collection gives you access to the latest insights from Aon's Human Capital team. You can reach out to the team at any time for questions about how we can assess gaps and help build a more resilience workforce.

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