Insurance buyers gain leverage as pricing softens: Aon

Aon said capacity and underwriting flexibility improved across major lines.

The global commercial insurance market entered 2026 with favourable conditions for buyers, including ample capacity, flexible underwriting and competitive pricing across major lines.

Strong insurer profitability and supportive reinsurance renewals have driven the current environment, allowing organisations to secure higher limits, broader cover and improved programme structures, according to Aon’s Q1 2026 Global Insurance Market Insights report.

However, it warned that outcomes are becoming more varied, with pricing and terms increasingly influenced by risk quality, geography, industry exposure and resilience planning.

Joe Peiser, chief executive of Risk Capital at Aon, said rising geopolitical tensions are testing assumptions around coverage, capacity and balance sheet protection. 

He noted that conflicts, supply chain disruption and sanctions exposure are affecting policy language, capacity and claims at the same time, making early risk assessment more important for organisations.

Tensions in the Middle East are already affecting underwriting appetite, pricing and claims activity across several lines, including marine, aviation, property, cyber and political violence. 

Disruptions to key trade routes such as the Strait of Hormuz have increased supply chain risks, contributed to energy price volatility and led to both active claims and precautionary notifications.

Marine insurance has been particularly affected, with insurers reassessing how war-related risks are priced and covered. 

Phil Smaje, global industry specialty leader for transportation and logistics at Aon, said heightened tensions involving the United

States and Iran have increased risks along major shipping routes and prompted adjustments by marine war insurers. 

Despite this, he added that overall marine market conditions remain soft, with sufficient capacity and continued support from the London market.

Aon said insurers are also tightening policy language and adjusting capacity more quickly, often ahead of clear operational or financial impacts.