Notable updates from each region of the world

Global Market Overview

Key Themes

The market remains challenging; however, there are early signs that the pricing trajectory may be moderating as:

  • Insurer growth goals have taken the place of a prolonged period of portfolio remediation
  • COVID-19 losses have not materialized as expected
  • New capacity continues to flow into the market

As economies rebound in 2021 with the rollout of COVID-19 vaccines, traditional risk and exposure variables are likely to normalize while these key longer-term issues gain relevance in insurer appetite and rating models:

  • Environmental, Social and Governance issues (e.g., Inclusion & Diversity, Climate Change)
  • Supply chain resilience and the increased focus on local sourcing of strategically important manufacturing and goods
  • The increase in frequency and severity of weather related events
  • Special Purpose Acquisition Companies

North America

  • Following a prolonged period of escalated pricing caused by myriad factors including rising loss costs and low interest rates, there are signs that more moderate conditions are emerging and are expected to continue throughout the year as new capacity flows in.

  • Changes in insurer leadership have led to strategic and operational shifts. Notable observations include more rigorous and centralized underwriting, heightened claims scrutiny, and changes in appetite. Starting early and providing detailed information is more important than ever.


  • While conditions remain challenging, there is a notable shift toward profitable growth and conditions are beginning to moderate in pockets.

  • Underwriting and pricing is evolving. Pricing models such as pay-as-you-drive, pay-how-you drive, price-per-minute (or kilometer), etc. are becoming more common. Underwriters are becoming less flexible and risk management / control measures are often a prerequisite for offering favorable terms.

Latin America

  • Uncertainty remains high due to continued increases in COVID-19 cases and restrictions, and the market remains challenged by ongoing insurer profitability issues. The local reinsurance market is rewriting some books of business which could further constrain capacity.

  • The underwriting process is becoming more stringent and underwriter attitudes remain somewhat conservative. More risks are being referred to central teams, which is leading to delays and creating complexity.

Asia Pacific

  • Some insurers have rebalanced their portfolios and are looking to grow again while others continue to focus on remediation and a return to profitability. For some buyers perceived as more attractive to the market, a growing gap is starting to develop between renewal pricing from an incumbent insurer looking at portfolio remediation and a new insurer looking at the risk with fresh eyes.

  • Newly proposed language related to silent cyber, infectious disease and contingent business interruption is at the heart of many negotiations, as questions arise related to specific language versus intent.

Navigating Today’s Environment: Solutions to Consider

  • Leveraging industry data and analytics, Aon develops portfolio solutions – like the Aon Client Treaty – to help reduce volatility in rate and coverage and to harness market capacity for the benefit of clients.

  • Through a collaboration with insurtech firm, Parsyl, Aon has introduced an innovative, transparent All-Risk Marine Cargo solution with temperature excursion coverage and a claims payment commitment, which leverages a combination of sensor data and analytics to report in real-time doses that fall outside the manufacturer’s temperature specifications while being transported or stored. This track-and-trace solution enhances risk management, informs logistics decisions when temperature excursions have been identified to minimize the risk of wasted vaccines, and enables timely claims payments.

  • As organizations shift their focus from premium spend to Total Cost Of Risk (TCOR), tools such as Aon’s Risk Financing Decision Platform become evermore impactful in determining optimal program structure by using complex claims simulations to model potential outcomes. This allows organizations to better understand the benefits of retaining more to create savings while minimizing volatility.