However, the market’s underlying fragmentation, persistent loss trends and the rise of systemic risks mean that today’s buyer-friendly environment may be short-lived. “Clients are seeing significant opportunities to strengthen their risk transfer programs, but it’s vital to recognize that the market is not monolithic,” said Joe Peiser, CEO of Commercial Risk Solutions at Aon. “While competition is driving pricing down and coverage up for preferred risks, we’re also seeing continued volatility in loss activity, especially in property, cyber and U.S. casualty. Now is the time for organizations to future-proof their programs and reinvest premium savings into long-term resilience.”
Key insights from the Q3 2025 report include:
Market Competition Accelerates, but Fragmentation Remains
• Double-digit rate reductions were common for property, cyber, and directors and officers (D&O) in key markets including the U.S., U.K., continental Europe, Korea, Australia, and Latin America.
• Capacity is abundant for most lines, with new entrants and established insurers targeting growth. Oversubscription is now commonplace for preferred risks.
• Underwriting is more flexible for well-managed risks, but remains disciplined for challenging exposures, especially U.S. casualty and catastrophe-prone property.
Favorable Conditions for Many Buyers, with Some Exceptions
• Preferred property and cyber risks saw the largest price decreases; casualty saw modest reductions except in the U.S., where adverse litigation trends continues to drive loss severity.
• D&O pricing remains soft, but moderation has emerged as insurers focus on sustainability.
• Motor insurance is an exception, with rates rising globally due to higher claims and repair costs.
Systemic and Macro Trends Persist
• Loss severity and frequency continue to rise, especially in property, cyber and U.S. casualty.
• The market is increasingly a collection of micro-markets, with capacity fragmented by product line, geography and risk profile.
• The current softening in property is seen as a “pricing correction” rather than a shift in fundamentals; capital discipline could slow further price reductions.
Strategic Opportunities for Risk Managers
• Buyers are encouraged to use premium savings to enhance coverage, increase limits, and invest in risk engineering and resilience.
• Long-term insurer relationships should be balanced against the value of competitive pricing and the reliability of claims service.
• Advanced data, analytics and scenario modelling are essential for navigating the evolving risk landscape.
Regional Highlights
• APAC, EMEA, and LATAM all report soft market conditions, with abundant capacity and competitive pricing for well-managed risks.
• The U.S. and Japan remain outliers, with challenging conditions in casualty and property, respectively.
• Catastrophe-exposed and high-hazard risks continue to face underwriting scrutiny and capacity constraints.
Claims Environment and Emerging Risks
• Insurers are investing in claims performance and automation, but social inflation and litigation trends — especially in the U.S. — are driving up costs and complexity.
• Cyber risk remains the top concern globally, with claims frequency rising and systemic exposures under close watch.
• Climate change, supply chain fragility and geopolitical instability are driving uncertainty and influencing claims trends worldwide.
Looking Ahead
• The Q3 report highlights four megatrends — Trade, Technology, Weather and Workforce — reshaping the risk landscape and requiring dynamic, integrated risk management strategies.
• Organizations are urged to review values, limits, sublimits, and insurer partners, and to reinvest in resilience while conditions remain favorable.
Aon 2025 Global Insurance Market Insights report
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