The cyber market in the UK has remained “stable and modestly” favourable in this year’s second quarter, while the Trade Credit market has become more challenging in the same period, according to Aon’s latest Q2 Market Dynamics Outlook: The United Kingdom.
According to the re/insurer, the cyber markets’ stable condition has been driven by healthy competition and appetite, it expects current market trends to continue. However, Aon noted, the impacts of claims inflation are being closely monitored.
Regarding Trade Credit, Aon said that the challenging market conditions have been driven by ongoing supply chain challenges, inflationary pressures and uncertainty related to the geopolitical events in Eastern Europe.
The firm expects the demand for Trade Credit coverage to continue to increase, even as appetite is expected to contract for risks in specific countries. Additionally, Aon expects Trade credit market conditions to remain challenging.
From a global perspective, Aon highlighted that Insurers remain concerned about future threat activity and systemic risk associated with common technology used across their cyber insurance portfolios.
Aon wrote: “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. For instance, Aon’s Cyber Solutions Group has been uniquely positioned with its fully integrated solutions to help clients manage risk more effectively.”
When it comes to the global perspective of the Trade Credit market, Aon sees favourable market conditions for most geographies.
The re/insurer wrote: “Driven by strong insurer performance across the portfolio at large, market conditions remained favourable for most geographies as capacity further expanded through new market entrants and expanded appetite.
“Rising inflation and the geopolitical events in Eastern Europe have fuelled economic uncertainty but this has not had a pronounced impact on insurer appetite or underwriting in most parts of the world.”