Insurers remain concerned about future threat activity and systemic risk associated with common technology used across their cyber insurance portfolios, according to Aon.
Releasing its Q2 market dynamics outlook report, the broker added that proactive risk identification and management – together with past insurance adjustments – have however helped insurers gain confidence in their pricing, coverage and market offerings.
While Q2 market conditions remained challenging for cyber, it noted that across-the-board adjustments have given way in some instances to individual risk underwriting, as new competition has entered the market:
“Driven by healthy competition and appetite, cyber market conditions remained stable and modestly favourable in Q2. Current market trends are expected to continue, however the impacts of claims inflation are being closely monitored.”
Another difficult sector has been trade credit, where Aon said that market conditions became more challenging in Q2, driven by ongoing supply chain challenges, inflationary pressures and uncertainty related to the geopolitical events in Eastern Europe.
However, it noted that demand for trade credit coverage is expected to continue to increase, even as appetite is expected to contract for risks in specific countries:
“Driven by strong insurer performance across the portfolio at large, market conditions remained favourable for most geographies as capacity further expanded through new market entrants and expanded appetite. Rising inflation and the geopolitical events in Eastern Europe have fuelled economic uncertainty but this has not had a pronounced impact on insurer appetite or underwriting in most parts of the world.”