Aon: insurance prices fall, but not for long
Global insurance buyers are enjoying a rare moment of relief as pricing softens and capacity grows across many lines, according to a new report from Aon. However, the professional services firm warned that window could soon slam shut.
In its Q2 2025 Global Insurance Market Insights report, Aon described the market as one of opportunity and risk. “Today’s market presents a unique, though perhaps temporary, window of opportunity for insurance buyers,” said Joe Peiser, Aon’s chief executive of commercial risk. “We’re seeing increased capacity, improving terms and competitive pricing across many lines.”
Aon noted that most property placements in the US saw double-digit rate reductions, while cyber and directors and officers coverage also experienced single to low double-digit declines. Globally, average pricing fell between 1 and 10 per cent, with Pacific markets seeing drops of up to 20 per cent.
However, Mr Peiser warned: “This is not a typical soft market cycle; it’s a soft market under stress.”
The stress comes from mounting global risks, including climate-related catastrophes, geopolitical conflict and cyber threats. The report highlighted that $100 billion in insured catastrophe losses occurred in the first half of 2025 alone — the second-highest on record.
Aon cautioned that ongoing loss deterioration in US casualty and cyber lines, combined with limited new capital, could cause the market to harden quickly if a major event occurs.
The message to buyers: act now, think strategically and don’t expect the good times to last.
•For the full Q2 2025 Global Insurance Market Insights report, see Related Media
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