How insurance markets are rewarding buyers with lower global rates

But Aon warns that volatility in property, cyber, and casualty lines remains a concern.

Insurance buyers are benefiting from one of the most competitive markets in years, with abundant capacity, broader coverage, and double-digit rate cuts across several lines and regions.

However, Aon’s Q3 2025 Global Insurance Market Insights cautioned that market fragmentation, persistent loss trends, and systemic risks could limit how long these favourable conditions last.

According to Joe Peiser, CEO of Commercial Risk Solutions at Aon, whilst competition is pushing prices down and expanding coverage for well-managed risks, volatility in property, cyber, and US casualty lines remains a concern.

Double-digit rate reductions were recorded in property, cyber, and directors and officers (D&O) insurance across major markets such as the US, UK, continental Europe, Korea, Australia, and Latin America. 

Capacity continues to expand as both new entrants and established insurers pursue growth, with oversubscription now common for preferred risks.

In contrast, underwriting remains cautious in segments exposed to catastrophe or high-loss activity. 

Property and cyber lines saw the biggest price decreases, whilst casualty saw smaller declines, except in the US, where rising litigation costs continue to weigh on results. 

Motor insurance remains an exception, with global rates rising due to increasing claims and repair costs.

Aon said loss severity and frequency continue to increase in property, cyber, and US casualty. 

The firm described the current softening in property insurance as a “pricing correction” rather than a fundamental market shift.

Across regions, APAC, EMEA, and Latin America reported soft market conditions with strong capacity for well-managed risks. 

The US and Japan stood out as exceptions, facing tougher conditions in casualty and property, respectively.

Cyber remains the top risk globally, with claims rising amidst growing systemic exposures. Aon also noted that climate change, supply chain disruptions, and geopolitical instability are influencing claims trends and adding uncertainty to the market.

The report identified four key forces shaping the risk landscape: trade, technology, weather, and workforce. 

Aon also urged companies to use current savings to enhance coverage, invest in resilience, and strengthen long-term risk management strategies.