In the fourth quarter of 2023, the global insurance market exhibited resilience in the face of inflationary pressures, according to the latest insights from Aon’s Q4 Global Insurance Market Dynamics report.
Despite inflationary forces, pricing in the insurance market remained relatively moderate.
However, risks with challenged profiles and adverse loss experiences, such as those exposed to natural catastrophes or significant U.S. liabilities, experienced more pronounced price increases.
Established insurers expanded their appetite, while new entrants targeted growth markets, resulting in healthy competition and ample capacity for well-performing risks.
Conversely, risks with challenging profiles or adverse loss experiences faced capacity limitations, prompting many to seek alternative risk transfer solutions.
While insurers maintained discipline in underwriting practices, year-end growth targets led to increased flexibility and options for clients, particularly for preferred risk types.
Superior renewal outcomes were supported by robust underwriting information and risk differentiation.
Expired limits and deductibles were readily available for most placements. Some insureds reinvested premium savings into increased limits or deductible decreases, particularly for well-performing risks and products in high-demand areas like Cyber and Directors & Officers insurance.
Insurers continued to differentiate themselves through coverage terms, offering enhancements supported by quality underwriting information.
However, certain restrictions, such as those related to Communicable Disease, Coverage Territory, PFAS, and Strikes Riot and Civil Commotion, remained non-negotiable.
