The insurance market remained growth-oriented during the second quarter of 2024 as insurers focused on underwriting and pricing for longer-term profitability and program stability, according to an Aon report. "Insurer growth ambitions continued to translate into a competitive, well capitalized market environment characterized by continued price moderation, underwriting flexibility, and the availability of coverage options, especially for preferred risk types," Aon said in the report. Insurance trends for Q2 2024 include:
  • Competition fueled by insurer growth ambitions led to buyer-friendly property market conditions for the majority of risks.
  • U.S. casualty exposures on both domestic and international placements continued to come under scrutiny given prior year reserve deterioration and ongoing concerns related to nuclear verdicts and adverse litigation trends. Meanwhile, U.S.-exposed and heavy industry risks experienced rate increases, more restrictive terms and conditions, and higher umbrella attachment points.
  • The Directors & Officers (D&O) and Cyber market environments were characterized by healthy competition and abundant capacity. Despite rising claims, the Cyber insurance market remained buyer-friendly with continued savings, particularly in high excess layers. Interest in Cyber insurance continues to broaden beyond the US and Europe with growing awareness of cyber incidents and capacity.
Meanwhile, reinsurance renewals in 2024, which Aon calls a "useful indicator of insurance market trends," have seen steady improvement through increased capacity and reinsurer appetite leading to rate reductions for property catastrophe risk and improvements. By the end of the first quarter of 2024, reinsurance capital hit a new record of $695 billion on retained earnings, recovering asset values and new inflows to the catastrophe bond market, according to Aon. The slideshow above illustrates five steps business leaders can take to address their insurance concerns as selected by KPMG. See also:
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