Aon, a global professional services firm specialising in risk, retirement and health solutions, has released its Q2 2026 Global Insurance Market Overview, highlighting a continued favourable environment for commercial insurance buyers.
The report found that strong insurer capacity, competition and high levels of industry capital continued to support softer market conditions, while technology and improved risk data increasingly influenced underwriting decisions.
Aon’s key findings show that many businesses continued to benefit from competitive pricing, broader coverage options and favourable renewal conditions during the second quarter of 2026. However, insurers are becoming more selective as they assess complex exposures, making accurate risk information and clear submissions increasingly important.
The company said most major insurance markets remained buyer-friendly, with property, casualty and cyber lines benefiting from strong capacity and competitive conditions. Financial lines also remained favourable in many regions, although Aon noted some signs of moderation. Automobile and US casualty continued to experience more challenging conditions, as claims inflation and loss trends encouraged insurers to take a more cautious approach to pricing and capacity.
Aon highlighted that geopolitical uncertainty remained a key influence on specialist insurance markets. Developments in the Middle East increased underwriting scrutiny, particularly for marine, aviation and political violence-related risks, with insurers placing greater focus on pricing, policy conditions and exposure management.
“The Middle East conflict is driving a differentiated response across the insurance market. The most pronounced impacts are in marine hull & war, marine P&I, aviation, and terrorism & political violence, where insurers are exercising greater underwriting discipline, repricing risk, and placing increased emphasis on policy terms and conditions. Despite these pressures, capacity remains available across all lines for well-managed risks,” added Christian Hoffman, Global Chief Executive Officer, Commercial Risk Solutions.
Aon said artificial intelligence and advanced analytics are increasingly being used to support underwriting, improve risk assessment and help insurers distinguish between different exposures. While AI has not yet become a major driver of pricing changes, the company noted that it is contributing to more detailed and consistent underwriting decisions.
“AI has not fundamentally changed pricing patterns – yet. Conditions in Q2 have continued to be driven by strong competition and abundant capacity. We do, however, see AI increasingly making pricing more technical, granular and consistent, while underwriting becomes more selective and informed,” commented Cynthia Beveridge, Global Chief Broking Officer, Commercial Risk Solutions.
The report emphasised that businesses with strong risk data, effective risk management practices and well-prepared insurance submissions are more likely to achieve favourable outcomes at renewal. Aon said organisations should use the current market environment to review insurance structures, explore alternative risk solutions and strengthen long-term resilience.
Aon’s regional analysis showed continued soft conditions across many global markets. Asia, EMEA and Latin America recorded pricing reductions of between 1% and 10%, supported by abundant capacity. North America remained more stable, with flat pricing and ample capacity, while the Pacific market experienced similar reductions alongside broader coverage availability.
Across key product areas, Aon found that cyber, property and casualty insurance remained among the most competitive markets. Automobile continued to show more moderate conditions, while directors’ and officers’ insurance varied by region.
The company also identified several claims developments affecting the market. Aon said digital tools and AI are creating opportunities for greater claims efficiency but are also introducing new risks. Other key trends include claims inflation linked to geopolitical pressures, insurers taking a stricter approach to large claims and the growing importance of claims service capabilities for insured organisations.
“The winners in the next decade won’t be the insurers that strip the most cost out of claims, but those that combine intelligent automation and global capabilities with deep, front line claims judgement,” said Mona Barnes, Global Chief Claims Officer, Commercial Risk Solutions.
Overall, Aon concluded that the commercial insurance market remains supportive for buyers, but the quality of risk information and the ability to demonstrate resilience are becoming increasingly important. Businesses that take advantage of current conditions to improve programme design, strengthen data quality and review risk strategies will be better prepared if market conditions become more challenging.
