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Canadian insurance market continues to improve: Aon's Quarterly Global Market Insights Report

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TORONTO, May 17, 2022 /CNW/ -- Aon plc (NYSE: AON), a leading global professional services firm, has released its quarterly Global Market Insights report, which provides insights on risk and insurance market trends around the world, powered by industry-leading data and analytics. The report also highlights the broader economic, political and social issues that play an important role in the risk landscape.

Aon's report for the first quarter of 2022 examines the risk, insurance and market trends that are impacting the industry and the market at large. The report also provides deeper insight into trends in the life sciences industry, global market conditions and major issues impacting the claims landscape.

This quarter's highlights include:

  • The numerous impacts related to the unfolding geopolitical events in Eastern Europe are profound and expected to continue, showing the interconnectivity of emerging and established risks. In the first quarter, there was increased volatility as rising commodity prices fuel inflationary pressures, decreased demand dampens global trading and global supply chains experience further disruptions.

  • The market moderation that began in late 2021 continued in the first quarter, making conditions modestly favorable for clients, especially for products and risk types targeted for insurer growth.

  • The cyber landscape remained volatile in in the first quarter.

"The Canadian insurance market will continue to improve slowly except for cyber, catastrophe-exposed risk and loss-driven accounts, which will remain challenging," said Russell Quilley, chief broking officer for Canada at Aon.

First-quarter 2022 highlights for Canada include:

  • Casualty/Liability: Rates and capacity have generally stabilized, except for risks in challenging industry classes, or which have significant U.S. exposure or material claims activity. Umbrella and Excess layers have started to experience more competition, while Primary layers have been experiencing a more selective approach from insurers.

  • Cyber: The proliferation of ransomware claims, coupled with a general lack of sufficient controls, has led to a significant shift in underwriting attitudes, a reduction of capacity, a contraction of appetite and widespread rate increases.

  • Property: Market conditions improved in the first quarter. Insurers sought out business; however, they continued to be somewhat conservative in their underwriting and deployment of capital. Inflationary pressures on values took center stage and more moderate rate increases continued for the majority of those insured.

  • Directors and Officers (D&O): The D&O market began transitioning as capacity expanded in Canada. Although insurers continued to remediate their portfolios, they looked to transition away from their restrictive underwriting approaches and focus on cautious profitable growth, offering ventilated capacity outside of the high-risk segments.

Aon's Global Market Insights report includes analysis of market dynamics, products and regions as well as actionable insight on how organizations can use the information to inform better decisions. To access Aon's first-quarter 2022 Global Market Insights report, please click here.

About Aon

Aon plc (NYSE: AON) exists to shape decisions for the better — to protect and enrich the lives of people around the world. Our colleagues provide our clients in over 120 countries with advice and solutions that give them the clarity and confidence to make better decisions to protect and grow their business.

Follow Aon on Twitter and LinkedIn. Stay up-to-date by visiting the Aon Newsroom and sign up for News Alerts here.

Media Contact
Alexandre Daudelin
alexandre.daudelin@aon.com
+1 514 967 9330

Aon plc (NYSE: AON) exists to shape decisions for the better—to protect and enrich the lives of people around the world. Our colleagues provide our clients in over 120 countries with advice and solutions that give them the clarity and confidence to make better decisions to protect and grow their business. (PRNewsfoto/Aon plc)
Aon plc (NYSE: AON) exists to shape decisions for the better—to protect and enrich the lives of people around the world. Our colleagues provide our clients in over 120 countries with advice and solutions that give them the clarity and confidence to make better decisions to protect and grow their business. (PRNewsfoto/Aon plc)

SOURCE Aon plc

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