Aon's Global Market Insight
Q4 2020 | Regional Highlights

North America

Major headwinds - including an increased frequency of high severity litigation claims, a severe storm season, and the pandemic - have hit insurers’ bottom lines, putting pressure on pricing, limits, deductibles, coverage terms and claims performance.

New capital is mobilizing from existing insurers, as well as through the formation of new re/insurance entities focused on property catastrophe reinsurance, casualty and financial lines.

EMEA

Economic uncertainty, escalating loss costs, and reduced investment income due to low interest rates have intensified insurers’ focus on results. This has led to continued price escalation, changing appetite, restrictions of coverage, and revisions to underwriting strategies.

The industry is broadly prepared for Brexit, which has required specific units to be established to comply with EU directives concerning the placement of business from Europe.

Latin America

COVID-19 has exacerbated an already challenging market faced with heightened risk profiles and escalating loss costs. Political risk, directors’ & officers’, complex and cat-exposed property, and the energy and power industries are particularly challenging.

To offset the effects of the market, alternative solutions such as captives, reinsurance and alternative program structures are being explored and leveraged.

Asia Pacific

The market remains challenging. Pricing has increased overall; however, the extent of increases varies widely by line of business, sector, geography, and renewal vs. new business, as well as whether or not the insurer is local.

With the centralization of the underwriting function, and in light of an increased focus on profitability, insurers are not looking at risk through the same local lens, with relationships less pivotal than they once were.

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