Q2 Trends by Line of Business


Driven by inflation, supply chain issues, and increased claims frequency, loss costs rose in Q2; however, competitive forces tempered upward rate pressure. Insureds’ use of vehicle safety technologies, including telematics, has become increasingly important to the underwriting process.


Market conditions were generally stable, but pricing and capacity varied widely based on industry, exposure type, and attachment point. Social inflation and nuclear verdicts continued to impact underwriting and pricing strategies, as well as loss development. Key underwriting concerns were per- and polyfluoroalkyl substances, wildfire, sexual abuse, and climate change.


While the E&O and Cyber insurance market appeared to be entering the final stretch of an aggressive two-year adjustment period, insurers remained concerned about future threat activity and systemic risk associated with common technology used across their cyber insurance portfolios. Proactive risk identification and management – together with past insurance adjustments - have helped insurers gain confidence in their pricing, coverage, and market offerings. While Q2 market conditions remained challenging, across-the-board adjustments have given way in some instances to individual risk underwriting, as new competition has entered the market. Aon’s Cyber Solutions Group has been uniquely positioned with its fully integrated solutions to help clients manage risk more effectively. A growing number of organizations leveraged innovations such as Aon’s threat intelligence services and threat hunts to understand their risk and implement programs to reduce their exposure. Those services have brought tremendous value to the underwriting process, yielding positive reactions from insurers and allowing Aon to bring capital to clients as they transfer risk.

Employers Liability/Workers Compensation

Coverage and pricing were generally stable for this highly regulated product. Insurer appetite and underwriting approaches varied widely from country-to-country and based on client industry, risk performance, and insurer growth targets.

Directors and Officers

As new capacity has entered the market over the past 24 months in many parts of the world, both from new insurers and through expanded appetite, conditions have eased. Far fewer price increases were imposed in Q2 and many single digit price reductions were achieved in well-performing segments. Risks in challenging or heavily COVID-impacted sectors or with governance or financial concerns continued to experience price pressure and capacity conservatism. Engagement with underwriters to highlight corporate positives and explain headwinds remained highly valuable. Minimum Increased Limit Factors have decreased meaningfully. Insurers continued to ask more questions around ESG protocols and disclosures.


Improved insurer performance has attracted new capital and served to moderate market conditions for most risks, with the notable exceptions of higher-risk industries, loss-impacted programs, or where risk management and progression was not evident. Market improvements have been somewhat dampened; however, by reinsurance price increases, a continued elevation of supply chain risk, and increased climate risk. In addition, valuation scrutiny continued, with impacts on capacity, coverage sub-limits and pricing. The predicted high-impact hurricane season has accelerated the pace of innovation related to catastrophe management tools (e.g., satellite imagery and the use of Synthetic Aperture Radar).

Trade Credit

Driven by strong insurer performance across the portfolio at large, market conditions remained favorable for most geographies as capacity further expanded through new market entrants and expanded appetite. Rising inflation and the geopolitical events in Eastern Europe have fueled economic uncertainty but this has not had a pronounced impact on insurer appetite or underwriting in most parts of the world.

Regional Insights

©2022 Aon plc. All rights reserved | Contact Us | Privacy Policy | Legal