Currently, most lines of business are facing an evolving risk landscape, but the abundance of capital and the market in general is driving Aon’s ability to create real innovation for clients, Aon’s Amanda Lyons highlighted during an Aon briefing for clients and media ahead of the 2026 Monte Carlo Rendez-Vous.
The executive, who serves as CEO of Bermuda and Global Head of Products, argued that unprecedented capacity across nearly every line of business is a key opening for cedents to reset and future-proof their programmes against market volatility.
With macroeconomic and geopolitical uncertainty lingering, buyers are increasingly redeploying reinsurance savings across their broader portfolios to protect retentions and fortify balance-sheet resilience, explained Lyons.
In property, reinsurers continue to generate strong double-digit return on equity (ROE), with pricing still holding above 30% over the index at the height of the stock market, Lyons notes.
Favourable catastrophe experience, with year-to-date insured losses at roughly $75 billion against an average of $114 billion, points to further rate softening in the 10% range.
Lyons said: “So, how can we use those savings to think about frequency protection or addressing retentions, or really to fortify profitable year-end results?
“We’re seeing more and more clients redeploy those savings to shore up their bias holistically, and sometimes those savings are being deployed across other lines of business, because at the same time that capital is increasing, so is macroeconomic and geopolitical uncertainty, and really just volatility in general.
“But what I think makes us most excited about this renewal season is that that increase in capacity, in capital and increase in volatility is also really driving increases in innovation.”
During the briefing, Lyons reviewed market conditions for each line of business and highlighted the corresponding innovations emerging within them.
Casualty markets remain bifurcated, she said, though prior-year loss creep is increasingly balanced by conservative booking postures on recent accident years and more disciplined defence against the plaintiffs’ bar. The threat in general of emerging risks and casualty continues to drive uncertainty.
“Aon, we’ve invested a lot of resources in this space to really help clients think about how to handle and model those exposures appropriately. Sometimes that’s via pricing or exclusions, and we’ve hired experts like Bob Revel, who’s a leader in that space and helps clients think about it. And sometimes it’s via reinsurance transactions, and we’re really energised by the desire of the reinsurers to want to help clients handle that exposure,” Lyons commented.
In casualty, strong rate increases are expected through the year-end, except for minor predictions in workers’ compensation due to its past profitability.
According to Lyons, reinsurers will likely favour clients with rate gains exceeding loss trends. Additionally, alternative capital entering via sidecars is becoming a significant market force in casualty.
The executive stated: “The investor interest in the casualty business is significant, and there’s not a conversation we’re having with a casualty insurer or reinsurer where the topic doesn’t come up.
“That being said, we think to date most clients are utilising this capacity in the right way; not replacing traditional reinsurers, but really using the capital to supplement their existing programmes and manage the cycle. So, with continued positive rate movement, relatively high interest rates, and increased capacity, we think insurers with good limits management, a positive rate story, and disciplined underwriting, will see reductions at 1.1.”
In the cyber line of business, on the US primary side, insurance rates still remain under pressure, an ongoing trend since 2023. Outside of the US, business continues to outperform, ample reinsurance capacity is driving further rate reductions and ceding commission improvements.
Lyon also noted that weather losses in Europe and APAC contrast with Americas’ profitable agriculture, inspiring new structures for shifting climate patterns. Additionally, data centre growth is fuelling cross-class development across property, environmental, credit, and other lines of business.
The executive concluded: “In closing, we see most lines facing an evolving risk landscape, but the abundance in capital and the market in general is really driving our ability to create real innovation for our clients, and we’re excited to see what that will bring in 2027.”
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