Pricing in the Pacific region is soft and capacity is abundant, according to Aon’s second-quarter Global Insurance Market Insights Report.

The broker says pricing is generally soft for property, directors’ and officers’, and cyber risk covers, and to a lesser extent casualty.  

Rates are firmer for motor cover because of repair costs and longer downtime, which are driving higher loss ratios for insurers.

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

However, it warns that while market conditions are favourable for buyers, “they are also fragile and likely to be temporary”.

Uncertainty is growing – with tariffs affecting inflation and supply chains, and amid war in Europe and the Middle East – but so are opportunities for those prepared to act. Large or surprising loss events could lead to insurers quickly changing their appetite on certain risks.

Aon reports prices falling 11%-20% in the Pacific market and says underwriters are demonstrating greater flexibility, particularly for preferred risks and those with strong risk management practices.

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

Aon says insureds that are well prepared, with detailed information and timely submissions, can get the best deals.

“Clients looking for stability should consider nurturing existing relationships and exploring long-term agreements for long-tail classes.”