Global insurance broker Aon said commercial insurance buyers continue to benefit from abundant capacity and strong competition across most major lines of business, even as insurers lean more heavily on artificial intelligence to sharpen underwriting decisions.
In its Q2 2026 Global Insurance Market Insights report, Aon said organisations are finding lower rates, broader coverage and improved policy terms in many markets. The favourable conditions stem largely from market dynamics, but the report said AI and advanced analytics are increasingly helping insurers evaluate risks with greater granularity.
AI shifts the underwriting conversation
The report said AI and analytics are transforming how insurers assess commercial risks by enabling more precise risk selection and capital allocation. As insurers rely more on technology to support underwriting decisions, businesses should expect to provide higher-quality risk information to demonstrate their risk profiles and secure access to coverage.
While capacity and competition remain the primary drivers of pricing and availability, Aon said AI is helping insurers make more informed decisions. That shift has implications for how brokers and their clients prepare submissions, particularly as insurers use data to differentiate between risks that once looked similar. Professionals looking to understand how these tools are reshaping the sector can explore AI for Insurance resources. The broader financial implications of data-driven risk assessment are also covered in AI for Finance.
Geopolitical pressure on specialty lines
Aon also pointed to 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 Christian Hoffman, CEO of Global Commercial Risk Solutions at Aon. "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."
Claims inflation and market exceptions
The report identified claims inflation as an ongoing concern across property, casualty and specialty lines. Rising labour, transportation and repair costs continue to push property claim values higher, while increased legal, medical and settlement costs are driving liability claims.
Commercial automobile and US casualty remain notable exceptions to the otherwise favourable market conditions. Despite those challenges, Aon said the current environment gives organisations a chance to strengthen insurance programmes and optimise risk transfer strategies before market conditions tighten.
Why this matters for insurance professionals
For brokers and risk managers, the report signals that market conditions favour buyers now, but the window may not stay open indefinitely. The growing role of AI in underwriting means clients who can present clean, data-rich risk information will likely secure better terms than those who cannot. Preparing that information now, while capacity is abundant, is a practical way to lock in improved coverage before the cycle turns.
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