Aon's Global Market Insights Report
Q2 2022

Our latest Global Market Insights Report provides analysis of the global insurance market including pricing, coverage, and underwriting trends. This quarter’s report highlights a continued shift in market conditions from the challenging environment experienced over the last two years to a more moderate market, with modest price increases coupled with a capacity reprieve in many products and geographies.

It also examines the strengthening demand for alternative risk financing options like captives amidst ongoing global uncertainty and casts a lens on how market trends are impacting the Food, Agribusiness and Beverage industry. Key trends include:

• ESG concerns gained prevalence in underwriting: ESG-related challenges such as extreme weather events, supply chain disruptions and public health crises continued to create volatility and uncertainty, for insurers and the risk community at large. Insurers scrutinized organizations’ ESG maturity and their plans for achieving disclosed targets and continued to consider the potential value of ESG ratings for underwriting purposes.
• Rising inflation drove up exposures and claims costs: Rising inflation led to exposure increases across property values, revenues, and vehicle costs, and began to drive increases in claims costs such as labor, repair and rebuild expenses, and verdicts and settlements. Exposure growth and projected claims inflation were key topics of underwriting discussion. Meanwhile, increased interest rates and improved investment income reduced pressure on underwriting profit.
• Insurance premiums increased modestly due to opposing market forces: While competitive market pressures and a focus on profitable growth served to tamp down rate increases, rising inflation and valuation scrutiny increased exposures, resulting in modest premium increases.

For more analysis and actionable insights to help you make better decisions, access the report below.