Industrial insurance is slowing down: Aon – business insurance
Tough market conditions remain in the commercial insurance sector, according to a report released Tuesday by Aon PLC, but appear to be weakening on some fronts as tariff increases slow in some lines and capacity comes into the market.
Underwriting discipline will also continue, including rising deductibles, sublimits and policy language exclusions, the report said.
“The pricing remains to varying degrees; however, the gains are slowing, ”said Aon. "Capacity is scarce, but sufficient for all but the largest and most complex placements, especially D&O."
The exclusions and mandatory clarifications occur with silent cyber, infectious diseases and conditional business interruptions, Aon said.
Insurers use floors to limit their overall risk and deductibles are on the up to shift some of the risk and offset price increases.
Although rate hikes are generally slowing, some lines remain in question, such as directors and officers liability, cyber, disaster-related real estate placements and those with conditional business interruptions, Aon said.
Those who want to secure large limit capacities are, according to the report, “far more challenged” than placements with lower limits.
Despite the ongoing challenges and persistently tough market conditions, insurers have started looking for areas of growth, Aon said.
"The market is less stressed," said the broker. "Insurers continue to shift from portfolio renovation to growth, with an emphasis on profitable growth."