UK insurance market remains ‘unchanged and buyer-friendly’ for 2025 – Aon

The UK insurance market has remained “unchanged and buyer-friendly so far in 2025”, with market conditions continuing a H2 2024 trend of softening. 

That was according to Aon’s 2025 Insurance market outlook report, which also noted that it was “important for businesses to consider their overall risk strategy and explore the available opportunities to develop and refine their risk transfer approach”.

Across the entire market, Aon’s research found that softening had continued in most lines by an average of between 11% and 20%. Motor, however, was an outlier, with rates still increasing marginally. 

Despite falling premiums, the broker noted that insurance capacity was ample, with more flexibility in underwriting. It explained that limits have increased, deductibles remained flat and coverage broadened as insurers began to compete on policy terms. 

The broker predicted that the direction of these market trends would continue despite the potential for “broader uncertainty and volatility, both from specific macroeconomic challenges such as trade tariffs and the wider geopolitical challenges”. 

Josh Webb, head of London broking for commercial risk at Aon, explained: “We see no reason why the current market conditions will not continue, certainly for the short term, and even accelerate and soften further in some areas as we go into the second half of this year.” 

Improved buyer conditions

Aon explained that many of the changes in market conditions – particularly around pricing and increased capacity – are being underpinned by “strong full-year results” reported by insurers over the last few months. 

From 2017 to 2020 there was less profitability in the insurance sector, with a sustained period of natural catastrophe losses hitting the industry. However, following an upward spike in 2020, Aon said there had been “a general trend downwards in combined rations to the point where, in terms of the latest results just released, many key insurers have reported underwriting profit”. 

Emerging growth plans from these insurers are likely to further increase competition and supply across the market, with Aon adding that this would provide insureds “with additional opportunities, at least in the short term”. 

Helen Bailey, broking director for property, commercial risk at Aon UK, said: “If any covers were removed or reduced during the hard market, [insureds should] think about requesting them back. 

”It is a highly competitive environment and insurers are looking to try and differentiate themselves with the cover they offer.”