Aon's Global Market Insight
Q3 2021

Aon’s Global Market Insights Report, produced quarterly, provides insights from Aon thought leaders powered by industry-leading data and analytics related to risk and insurance market trends around the world. In addition to identifying the key events and trends driving market change, the report also highlights the broader economic, political and social issues affecting each geography that play an important role in the insurance market landscape. In addition to these insights, the Q3, 2021 edition takes a deeper dive into three industries and 17 countries. Key Q3 findings include:

• There is a general deceleration of price increases driven by myriad converging factors:
• COVID-19 losses did not materialize as expected and the pandemic-driven uncertainty of 2020 has largely subsided (although some insurers are concerned about potential long-tail exposure)
• Insurer pricing in some product lines is nearing equilibrium, and, in many segments, remediation efforts have given way to a focus on growth
• Current pricing levels, coupled with improved portfolio performance, have increased appetite and attracted new capital from traditional and non-traditional sources
• There is a continued evolution of underwriting practices in the industry as a growing number of insurers transition to centralized underwriting for many risks, and the process becomes more rigorous and data-driven than ever
• Cyber, and especially, Ransomware has surpassed Directors & Officers and Natural Catastrophe risk to become the most strained class of business, and related insurance market challenges are called out by nearly every country featured in this quarter’s report.

Not surprisingly, the Q3 market insights parallel the shifting risk landscape and related client concerns that were highlighted in the Global Risk Management Survey: As risks related to cyber, communicable disease, contingent (non-damage) business interruption, and climate change become more volatile, insurer underwriting practices are becoming more rigorous, appetite is shifting, coverage terms are being clarified, and attachment points are increasing.