Pricing in the Pacific region is soft and capacity is abundant, according to Aon’s second-quarter global insurance report.

The broker reports pricing drops of 11%-20% and increased underwriting flexibility, particularly for preferred risks and those with strong risk management practices.

Limit increases are generally available, particularly for cyber and property.  

Pricing is generally soft for property, directors’ and officers’, cyber and, to a lesser extent, casualty covers.  

Rates are firmer in motor because of repair costs and downtime that is driving higher loss ratios for insurers.

Well-prepared insureds providing detailed information and timely submissions can get the best deals, and clients looking for stability should nurture existing relationships, Aon says.

In the global market, the second quarter brought a broadening of insurer appetite, with most regions and lines of business having ample capacity and competition.

However, Aon says that while market conditions are favourable for insureds, “they are also fragile and likely to be temporary”.

Geopolitical risk, including the effects of tariff retaliation on inflation and supply chains, mean the buyers’ market could turn quickly.