Q1 Market Dynamics

Pricing

The moderation that began in late 2021 continued in Q1. While modest price increases continued across most of the market, some decreases were achieved for targeted products and risk types. Volatility has largely stabilized, with the most notable exception of Cyber.

Capacity

New capacity has mobilized – either through new market entrants or expanded appetite in areas targeted for growth – and overall capacity was sufficient in Q1 for most products and risk types, with the most notable exception of Cyber. Aggregate exposures remained under scrutiny.

Underwriting

Underwriting scrutiny and rigor continued as insurers focused on reducing volatility through best-in-class risk selection. Appetite expanded in areas targeted for growth, even as insurers kept a close watch on the bottom line. Risk differentiation was key to achieving superior outcomes.

Limits

While most placements renewed with expiring limits, some renewed with increased limits as a result of economic/inflation-driven exposure increases and to adjust for limit reductions that took place during 2020 and 2021.

Deductibles

Past corrective measures had a positive impact on insurer performance and most risks renewed with expiring deductible levels. Risks continuing to experience claims frequency despite deductible increases saw further deductible adjustments.

Coverages

The coverage stability that began in late 2021 continued and broader terms were achieved in some cases where insurers leveraged coverage as a differentiator. Terms and conditions – especially, those related to cyber, terrorism, sanctions, and war, as well as coverage territory – shifted in response to geopolitical events in Eastern Europe.

Trends by Line of Business

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