{"id":1097,"date":"2025-06-30T10:30:40","date_gmt":"2025-06-30T10:30:40","guid":{"rendered":"http:\/\/nerdalertcreative.com\/?p=1097"},"modified":"2025-06-30T11:38:50","modified_gmt":"2025-06-30T11:38:50","slug":"trend-towards-buyer-friendly-conditions-accelerated-at-mid-year-renewals-aon","status":"publish","type":"post","link":"http:\/\/nerdalertcreative.com\/index.php\/2025\/06\/30\/trend-towards-buyer-friendly-conditions-accelerated-at-mid-year-renewals-aon\/","title":{"rendered":"Trend towards buyer-friendly conditions accelerated at mid-year renewals: Aon"},"content":{"rendered":"

In its mid-year 2025 reinsurance market dynamics report, Aon has highlighted that the increased availability of property catastrophe reinsurance, combined with greater flexibility from reinsurers, makes this an opportune moment for insurers to reevaluate their protection strategies.<\/p>\n

\"aon-storm\"As regular readers will know, June 1 and July 1 mark major reinsurance renewal dates for the U.S., Latin America, Australia, and New Zealand.<\/p>\n

According to Aon\u2019s report, despite an active first half marked by natural catastrophe losses, these mid-year renewals were characterised by a broadly competitive environment, with reinsurers, insurance-linked securities (ILS) markets, and new entrants actively deploying capacity in pursuit of market share.<\/p>\n

\u201cThe property catastrophe market continued to benefit from increased supply across the board, leading to more flexible terms and conditions, and greater pricing competition in all regions. The mid-year renewals were notable for a further shift in the market\u2019s appetite, with reinsurers more willing to provide protection lower down on programs,\u201d Aon\u2019s report said.<\/p>\n

Products that were not widely available at previous recent renewals were reportedly up for discussion, including aggregate covers.<\/p>\n

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However, as per Aon, the mid-year renewals also saw reinsurers take a considered approach to differentiation.<\/p>\n

\u201cCompetition was most intense for middle layers where reinsurers saw premium growth opportunities, and where competitive tension from ILS capital was most felt,\u201d Aon said.<\/p>\n

In the U.S., Australia, and New Zealand, loss-free property catastrophe placements are said to have seen low double-digit rate cuts, while loss-affected accounts faced flat or rising prices. Latin America and the Caribbean also saw moderate reductions as pricing eased from its peak.<\/p>\n

Meanwhile, Florida and non-loss-affected U.S. regional insurers had positive renewals, supported by rating actions, portfolio management, and Florida\u2019s legislative reforms restoring reinsurer confidence.<\/p>\n

\u201cWhile reinsurance conditions continued their incremental improvement at mid-year renewals, the operating environment remains unpredictable and volatile. Conflicts and trade wars threaten capital market stability and global economic growth, as well as raising the prospect of higher inflation and supply chain disruption. Against this backdrop, insurers and reinsurers face potential volatility from a changing risk landscape, and in particular from social inflation, extreme weather and cyber threats,\u201d Aon added.<\/p>\n

The firm continued, \u201cWith forecasters predicting an above-average North Atlantic hurricane season in 2025, natural catastrophes are another major source of volatility.<\/p>\n

Global insured losses from natural disaster events in the first quarter of 2025 were estimated at around $60 billion, the second-highest Q1 figure on record, driven by the $40 billion California wildfire loss. The first half of 2025 is likely to become the second costliest on record due to additional catastrophe activity in the second quarter, including two large severe weather outbreaks in the U.S. on May 14\u201317 and May 18\u201320.\u201d<\/p>\n

Still, Aon noted that reinsurance market conditions are likely to remain favourable for the foreseeable future.<\/p>\n

The firm\u2019s report went on, \u201cWhile the reinsurance industry has shown its capacity to absorb $50 billion plus loss event(s), increased retentions continue to push the majority of natural catastrophe losses to insurers over the last two years<\/p>\n

\u201cWith the increased availability of property catastrophe reinsurance and growing flexibility of reinsurers, now is a good time to reassess protection needs. Current conditions create opportunities for insurers to address specific issues or to adjust program structures and coverage to reduce volatility in both property and casualty.<\/p>\n

\u201cIt is also a good time to look ahead to future renewals and explore a diverse range of capital sources and products, including facultative, structured reinsurance solutions, automated capacity and facilities, as well as parametric and alternative capital markets. We are seeing growing interest in these solutions, which can address areas of volatility, as well as create competitive tension and build additional limit.\u201d<\/p>\n

The post Trend towards buyer-friendly conditions accelerated at mid-year renewals: Aon<\/a> appeared first on ReinsuranceNe.ws<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

In its mid-year 2025 reinsurance market dynamics report, Aon has highlighted that the increased availability of property catastrophe reinsurance, combined […]<\/p>\n","protected":false},"author":1,"featured_media":1099,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[],"class_list":["post-1097","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-reinsurance"],"_links":{"self":[{"href":"http:\/\/nerdalertcreative.com\/index.php\/wp-json\/wp\/v2\/posts\/1097","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/nerdalertcreative.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/nerdalertcreative.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/nerdalertcreative.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/nerdalertcreative.com\/index.php\/wp-json\/wp\/v2\/comments?post=1097"}],"version-history":[{"count":3,"href":"http:\/\/nerdalertcreative.com\/index.php\/wp-json\/wp\/v2\/posts\/1097\/revisions"}],"predecessor-version":[{"id":1101,"href":"http:\/\/nerdalertcreative.com\/index.php\/wp-json\/wp\/v2\/posts\/1097\/revisions\/1101"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/nerdalertcreative.com\/index.php\/wp-json\/wp\/v2\/media\/1099"}],"wp:attachment":[{"href":"http:\/\/nerdalertcreative.com\/index.php\/wp-json\/wp\/v2\/media?parent=1097"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/nerdalertcreative.com\/index.php\/wp-json\/wp\/v2\/categories?post=1097"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/nerdalertcreative.com\/index.php\/wp-json\/wp\/v2\/tags?post=1097"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}