The global insurance market in 2023 demonstrated resilience
The global insurance market showed resilience to inflationary pressures in 2023, according to the latest data in Aon’s report on the dynamics of the global insurance market for the fourth quarter.
Despite inflation, prices on the insurance market remained relatively moderate. However, exposures with complex profiles and adverse loss experiences, such as exposures to natural disasters or significant US liabilities, experienced more significant rate increases.
Legacy insurers have widened their appetites while new entrants have targeted emerging markets, resulting in healthy competition and ample scope for effective exposures.
In contrast, risks with complex profiles or adverse losses have faced capacity constraints, prompting many insurers to seek alternative risk transfer solutions.
While insurers maintained strong underwriting, year-end market growth targets led to increased flexibility and new opportunities for clients, particularly for low-loss exposures.
Expired reinsurance limits and deductibles were readily available for most exposures in global markets. Some policyholders have reinvested premium savings into increasing limits or reducing deductibles, particularly for performance risks and products in high-demand areas such as cyber and directors and officers liability insurance.
Insurers continued to differentiate themselves through coverage and underwriting.
However, certain restrictions related to infectious diseases, coverage area, and strikes and political and civil disturbances remained unchanged.