Looking Forward - Aon Focus, More Pricing Deceleration

Research evidence excerpt

Looking Forward - Aon Focus, More Pricing Deceleration

also went negative which is where we have heard rate inflation and changes in the legal and regulatory

deceleration has trickled down from large account (small account was still positive environment.

but decelerated). IVANS data showed overall deceleration but modest sequential

acceleration in commercial auto and commercial property. See here for full note. Insurance Brokers: The insurance brokers

industry is subject to risks including interest rate

• Industry Data Supports Signs of Peak Cycle: While doing a data pull for a client risk, P/C underwriting cycle and competition.

we found some interesting trends in the overall insurance industry. We think the

data shows that the U.S. P&C insurance industry continues to demonstrate strong Insurtech: The Insurtech industry is subject to

underlying profitability, with combined ratios and ROEs reflecting the benefits of several risks including growth, profitability, underwriting,

years of disciplined underwriting and rate adequacy. While commercial lines pricing is AI adaption and cybersecurity.

moderating, which is consistent with themes of a softening market, loss ratio trends

remain favorable across most lines, and large insurers are generating returns higher Life: Interest rates; regulatory environment;

than what we have seen in the last decade. See here for full note. secular trends across fee & risk-based

businesses; fee pressure; FX; distribution &

access to customers; pricing dynamics &

• May CPI: Auto Insurance vs. Claims Cost Spread - Incremental Negative: May's inflationary trends.

inflation news is incrementally negative for insurers as insurance prices decelerated

more than claims costs decelerated: auto insurance prices decelerated sharply, home