Aon, a global professional services firm focused on risk, retirement and health solutions, reported Global insurance market insights for the first quarter of 2026 The insurance industry is experiencing generally soft pricing conditions, supported by strong capabilities and intense competition, as well as continued discipline in specific high-risk and regulatory areas.
Aon noted that as insurers compete more aggressively and add capacity, pricing is falling across most regions and lines of business, with some large U.S. property accounts seeing double-digit declines.
Some insurers also enter into long-term agreements for specific risks, allowing clients to secure current pricing levels for a longer period of time, Aon said.
However, Aon reported that the pace of layoffs was slowing in several areas, with signs of stabilization in areas such as directors and officers insurance and cyber.
In contrast, Aon highlighted continued strength in auto and US casualty, with insurers still looking for modest growth in response to claims experience, while Japan remains unique as regulatory pressure supports firmer pricing conditions.
Aon said the overall market capacity was ample, driven by strong profitability among insurers and supportive reinsurance results after renewals on January 1. Competition is fierce, with both established insurers and new market entrants looking to expand their portfolios, particularly in property and non-U.S. casualty businesses.
Aon has also observed increased participation in international markets, including the London insurance market, particularly for larger, more complex risks. Despite overall strong capacity, Aon noted that restrictions remain in place for U.S. casualty, certain commercial auto risks, and certain Japanese property and casualty risks.
On the underwriting front, Aon reports that in order to remain competitive, insurers have adopted extensive flexibility and are more willing to adjust terms and conditions, increase limits and enhance coverage.
However, Aon stressed that underwriting discipline remains, with insurers continuing to closely align pricing and preferences with risk quality. Aon said clients that demonstrate strong risk management practices and effective loss prevention are more likely to receive improved terms.
At the same time, Aon noted that underwriting remains more constrained in complex and high-risk areas such as casualty, auto and catastrophe property risks in the U.S., with regulatory developments in Japan and China also leading to tighter underwriting standards.
Aon highlighted the growing willingness of insurers to offer higher limits and sublimits in competitive lines of insurance such as property and casualty, cyber and directors and officers coverage. Many clients are taking advantage of the current situation to restore limits that were reduced during previous more difficult market conditions and to more closely align coverage with risk data and modeling insights.
However, Aon reported that caution remains on U.S. casualty, auto and certain catastrophic property risks, with insurers still selectively raising limits and, in some cases, reducing exposures.
While Aon noted pressure in areas affected by adverse loss trends, particularly automotive and U.S. excess casualties, deductibles remained broadly stable, while some clients are reassessing deductible strategies as part of broader risk management costs.
On the coverage front, Aon observed that most renewals maintain existing terms, despite the increasing availability of broader coverage and enhanced features in competitive areas including property, cyber, directors and officers. Aon also highlighted the opportunity for clients to restore previously reduced coverage and sublimits, particularly related to climate, cyber and supply chain risks.
The cyber market continues to innovate, with developments including coverage of AI-related threats and supply chain risks. At the same time, Aon noted continued restrictions in the casualty market related to PFAS and data privacy, while in Mexico regulatory and enforcement changes related to drug trafficking are expected to result in tighter coverage conditions for strikes, riots and civil unrest.
