Aon — It’s a Soft Commercial Market but will it Last?

After looking at the numbers from Aon’s Q2 2025 Global Insurance Market Insights report, Aon’s Commercial Risk CEO Joe Peiser said the commercial insurance market is currently in a “soft” cycle. Capacity is expanding and prices are falling. However, Peiser predicts it won’t last.

Maybe.

Expanding the study’s conclusions further, Peiser said supply chain troubles, geopolitical instability, cyber issues, infrastructures that are vulnerable and fragile and climate change could very quickly put a stop to the soft market.

“This is not a typical soft market cycle; it’s a soft market under stress,” he said “Large or surprising loss events, in tandem with geopolitical or financial market volatility, could affect a rapid change in insurer appetite for certain risks.”

As if to prove his point, the report said rates are soft on some lines, the casualty, property and cyber lines in the U.S. are showing loss activity.

“That means organizations need to think and act strategically — leveraging favorable conditions to strengthen their programs, optimize capital and build resilience for what comes next,” Peiser said.

Source link: Carrier Management — https://bit.ly/4forQRG

Source link: Insurance Journal — https://bit.ly/4fkvP1K