Estimated reading time: 4 minutes
Aon’s latest renewal snapshot spans many lines and regions. This article highlights the key points from the broader report on cyber insurance and provides brief context on other lines.
Cyber Insurance Market Tone: Resilient, With Stabilizing Rates
Aon reports a resilient cyber market after ten straight quarters of rate decreases. The rate environment now shows signs of stabilizing. Claims trends remain within expectations despite headline incidents. The report cites the CrowdStrike outage and “ransomware attacks by groups such as Scattered Spider.”
“The underlying cyber insurance market remains resilient despite ten consecutive quarters of rate reductions.”
Capacity: Adequate Today, Aimed at Closing the Protection Gap
Cyber reinsurance capacity is more than adequate for current demand. Aon urges the industry to close the cyber protection gap. The firm projects the global cyber insurance market to reach $24 billion by 2029, up from $15 billion today. The cyber reinsurance could grow from $6 billion to $9 billion by 2029.
New Structures: Stop-Loss for Shock Periods
Insurers will see a broader set of reinsurance options at the 2026 renewals. Aon placed a “first-of-its-kind stop-loss reinsurance at 6/1” that protects against a surge of claims within a defined time window. This structure aligns growth plans with volatility control. Reinsurers benefit from portfolio diversification.
Loss Experience: Lower Severity With Better Data
Underwriting actions have helped contain large losses. Aon notes the average claim payment fell 77% in 2024, even as frequency rose. New data capture, including Aon’s Cyber Exposure Schema, supports more accurate pricing and portfolio management.
Facultative and Aggregates: More Tools on the Shelf
Demand for facultative reinsurance continues to climb as a growth tool. Aon highlights automated facultative capacity that accelerates placements. Aggregate, frequency, and earnings protections have become more accessible. Aggregate purchasing “rose by 50 percent in 2025.” Retentions are trending lower in select cases.
Why Cyber Has a Tailwind From the Market Backdrop
The broader reinsurance market shows substantial capital and healthy results. Global reinsurance capital reached an estimated $735 billion by June 30, 2025. Alternative capital hit a record $121 billion, with catastrophe bonds outstanding at $54 billion.
Sector profitability supports capacity deployment. The average combined ratio across 30 global reinsurers was 94.8% in the first half. The average ordinary investment return was 3.9% annualized. Return on equity averaged 14.5% and remained above the cost of equity.
Executive Takeaways
Aon frames today’s conditions as a buyers’ market that rewards strategy. Success depends on “anticipating and responding to change… using the full spectrum of solutions.” The firm urges insurers to leverage diverse capital and refine product mixes to support growth and manage volatility.
What Cyber Insurance Buyers Can Do Now
Use the stable rate tone to right-size limits and broaden terms. Explore event-window stop-loss layers for operational risk spikes. Expand facultative for peak accounts and tough classes. Use enhanced exposure schema data to justify limit increases. Prepare for growth in market capacity through 2029.
Get The Cyber Insurance Upload Delivered
Subscribe to our newsletter!
Beyond Cyber: Signals From Property and Casualty
Property treaty capacity is ample and competitive. Healthy results have kept ceded catastrophe losses “relatively benign.” Buyers have room to restructure programs and seek value. Insurers are expected to raise global property catastrophe limits by about 5% in 2026 after a 6% rise in 2025.
Casualty conditions look stable but more differentiated. Reinsurers monitor reserves, nuclear verdicts, and litigation finance. Named-peril casualty solutions are emerging for pre-litigation threats. Tort reform and limits on third-party funding are gaining momentum.
Related Posts
