Aon reports that commercial insurance buyers continued to benefit from favourable market conditions in the second quarter of 2026, while noting that some clients are exploring self-insurance and higher retentions to secure further savings. The Q2 2026 Global Insurance Market Insights Report states that where clients have already optimised deductibles, some have explored self-insurance solutions to achieve further premium reductions. In North America, casualty buyers are increasingly considering higher retentions as a tool to reduce overall total cost of risk or stabilise insurer rate volatility. In EMEA, insureds that have already optimised deductibles are exploring total cost of risk or self-insurance solutions with a view to further reducing premium spend. Aon says clients with large captives are taking advantage of access to digital claims capabilities through third-party adjusters, as risk managers look to increase control and transparency around claims trends and performance. The broker describes the current environment as a strategic but likely temporary opportunity for risk managers to challenge programme structures, limits, retentions and policy wordings, and to explore where alternative risk transfer strategies can enhance resilience and capital efficiency. That window will narrow if casualty trends, reserve pressure, catastrophe losses or geopolitical volatility erode insurer profitability, according to the report. Pricing fell by between 1 and 10 per cent across Asia, EMEA, Latin America and the Pacific, while North America was flat. Capacity is recorded as abundant in all regions except North America, where it is described as ample. Commercial automobile and US umbrella were the clear outliers to soft conditions, with pricing under upward pressure due to adverse claims trends. Cynthia Beveridge, global chief broking officer for commercial risk solutions, says: “Conditions in Q2 have continued to be driven by strong competition and abundant capacity. We do, however, see AI increasingly making pricing more technical, granular and consistent, while underwriting becomes more selective and informed.” Christian Hoffman, global chief executive officer for commercial risk solutions, says: “The Middle East conflict is driving a differentiated response across the insurance market. 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.” Jon Pipe, head of commercial risk for commercial risk solutions in Asia, says: “Across Asia, conditions have remained favourable for commercial insurance buyers, although insurers have doubled down on risk differentiation. AI has begun to shape insurer behaviour more visibly, improving data triage, underwriting discipline, and claims decision support. But it has also raised new questions for underwriters around model governance and how emerging technology risks should be priced and covered.”
