Buyer-friendly competitive market may be short-lived – Aon

Insurance buyers are enjoying a competitive market driven by plentiful capacity, broad coverage and double-digit rate reductions, though underlying market fragmentation, systemic risks and persistent loss trends may curtail the good mood among buyers sooner than they would have hoped.

This is according to the latest Global Insurance Market Insights report from broker Aon, released yesterday (5 November 2025).

Several key lines in the UK market underwent double-digit rate reductions, with drops in property, cyber and directors’ and officers’ (D&O) insurance enabled by abundant capacity from new entrants and established insurers targeting growth. Indeed, these markets are regularly seeing over-subscription for preferred risks.

However, the report warned that persistent underlying factors could lead to the dissolution of such a favourable market for clients, as insurers seek to mitigate macro-trends in the industry.

The severity and frequency of incidents rose in many key sectors – most notably the property, motor and cyber markets – while market fragmentation by product line, geography and risk profile has been a concern for some time.

Significant opportunities

The report also urged buyers to reinvest their premium savings into enhanced coverage and increased limits, to ensure they have the protection they need in the face of an unpredictable geopolitical and technological outlook.

Joe Peiser, chief executive of commercial risk solutions at Aon, said: “Clients are seeing significant opportunities to strengthen their risk transfer programmes, but it’s vital to recognize that the market is not monolithic.

“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 US casualty.

“Now is the time for organisations to future-proof their programs and reinvest premium savings into long-term resilience.”