Q4 Trends by Line of Business

Automobile

The environment is evolving as telematics, parametrics, and other innovations become important underwriting and pricing tools. While the environment is competitive, modest rate pressure continues.

Casualty/Liability

Market conditions have moderated in some key market segments. Underwriting concerns include: ESG-related risks, climate change, (wild)fire, pharmaceuticals, cyber, chemical compounds, sexual abuse, social inflation and US-domiciled/exposed risks (on non-US placements). COVID-related exclusions remain.

Cyber

The cyber landscape is becoming increasingly complex and volatile, with frequency and severity of loss events continuing to challenge insurers and clients. Market conditions remain difficult, with rigorous underwriting along with significant rate and deductible increases. Some insurers are imposing coverage restrictions, sub-limits and capacity limitations on ransomware. Global aggregation of losses is a key concern, causing a contraction in global capacity.

Directors and Officers

Market conditions have moderated as new capacity has become available; however, ongoing concerns related to the potential impacts of COVID-19 continue to create a challenging environment for some sectors and organizations.

Employers Liability/Workers Compensation

Coverage and pricing is highly regulated and generally stable; however, underwriting rigor has amplified, and positions are conservative, on poor-performing risks and loss-active segments.

Property

New capacity is entering the market and, while conditions remain moderately challenging, they continue to stabilize for profitable, limited natural catastrophe-exposed risks. Underwriting discipline continues to strengthen and risk controls are important to achieving favorable outcomes.

Trade Credit

COVID-related insolvencies have not materialized as expected; however, where government support continues to taper, insurers are keeping a watchful eye. Appetite is strong, capacity is sufficient, and healthy competition is driving favorable pricing as insurers look to achieve profitable growth.

Regional Insights

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