Abundant insurance capacity and strong competition continue to create favourable conditions for commercial insurance buyers across most major lines of business, according to global insurance broker Aon in its Q2 2026 Global Insurance Market Insights report.
According to the report, organisations are benefiting from lower rates, broader coverage and improved policy terms in many markets. At the same time, insurers are increasingly using data, advanced analytics and artificial intelligence (AI) to strengthen underwriting decisions and better differentiate risks.
The report said AI and analytics are transforming how insurers evaluate commercial risks by enabling more granular risk selection and capital allocation. As insurers increasingly rely on technology to support underwriting decisions, businesses are expected to provide higher-quality risk information to demonstrate risk quality and improve access to coverage. While market capacity and competition remain the primary drivers of pricing and availability, Aon noted that AI is helping insurers make more informed underwriting decisions.
Aon also highlighted the growing impact of geopolitical instability on specialty insurance markets, particularly amid the ongoing conflict in the Middle East. Heightened underwriting scrutiny has emerged across marine, aviation, terrorism, political violence, energy and trade-related risks, with insurers placing greater emphasis on policy terms, conditions and exposure management.
"The Middle East conflict is driving a differentiated response across the insurance market," said Aon CEO of Global Commercial Risk Solutions Christian Hoffman. "The most pronounced impacts are in Marine Hull & War, Marine P&I, Aviation, and Terrorism & Political Violence, where insurers are exercising greater underwriting discipline, repricing risk and placing increased emphasis on policy terms and conditions. Despite these pressures, capacity remains available across all lines for well-managed risks."
The report also identified claims inflation as an ongoing concern across property, casualty and specialty lines. Rising labour, transportation and repair costs continue to increase property claim values, while higher legal, medical and settlement costs are driving liability claims. Commercial automobile and US casualty remain notable exceptions to the otherwise favourable market conditions. Despite these challenges, Aon noted that the current environment presents an opportunity for organisations to strengthen insurance programmes and optimise risk transfer strategies before market conditions tighten.