Pricing
Rate increases continued to decelerate throughout the quarter across most policy lines, with the key exceptions of Cyber, as well as higher-risk sectors and risks with adverse claims experience. Pricing remained challenging for sectors and risks deemed likely to create volatility for insurers.
Capacity
Capacity expanded in some areas targeted for insurer growth and was relatively stable across most products with the key exceptions of Cyber and Natural Catastrophe-exposed Property. While green shoots started to appear late in the quarter for Cyber, conditions were less favorable for Natural Catastrophe-exposed risks due largely to continued pressure from the reinsurance market.
Underwriting
Insurers sought growth and expanded their appetite in targeted areas (e.g., middle market risks) but remained cautious of their bottom line. Quality and detailed underwriting information was a key enabler of superior renewal outcomes.
Limits
Limits have stabilized as portfolio mandates have become less prevalent. Adjustments were made only on a case-by-case basis.
Deductibles
Deductibles were broadly stable, although increases were applied to trending loss areas and poor performing risks. In addition, minimum deductibles were applied to designated business sectors.
Coverages
Coverage was generally stable, except in targeted areas including Cyber, Terrorism, and War and Sanctions, especially related to Ukraine, Russia, Belarus and Myanmar.
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