The Swiss insurance and reinsurance markets are navigating a transformative phase, shaped by stabilisation in some areas and challenges in others. Aon’s 2024 Trend Barometer provides valuable insights into these evolving dynamics. Below is an overview of the key trends and opportunities highlighted in the report.
Evolving Market Conditions
The Swiss insurance market shows stabilisation, driven by tightened underwriting standards that have improved profitability. New entrants have fostered competition, particularly for property insurance. However, challenging exposures such as natural catastrophes, chemicals, and food industries still face limited capacity and higher premiums.
The emphasis on individualised risk assessments for claims-heavy sectors like liability highlights a shift toward more granular underwriting. Additionally, cyber and D&O markets remain competitive with sufficient capacity, indicating opportunities for businesses with strong risk management practices.
Sector-Specific Observations
- Property Insurance
- Stabilisation creates buyer-friendly conditions for standard risks.
- High-risk areas like natural hazards remain costly.
- Liability Insurance
- PFAS exclusions dominate conversations amid regulatory concerns.
- U.S. exposures are increasingly scrutinised due to adverse litigation trends.
- Motor Insurance
- Rising claims costs linked to inflation and supply chain disruptions.
- Growing adoption of electric vehicles signals a shift toward sustainable mobility.
- Cyber Insurance
- Competition among insurers is driving premium reductions.
- Increasing reliance on data analytics to enhance risk differentiation.
- Reinsurance
- Treaty reinsurance stabilises while capacity remains steady.
- Natural catastrophe risks remain a pressing concern.
Emerging Trends
The influence of ESG considerations continues to reshape underwriting decisions. Sectors such as marine insurance are integrating environmental risk factors into their frameworks, while industries with high ESG scrutiny face evolving challenges.
In addition, technological advancements like AI are beginning to transform risk evaluation processes. These innovations are likely to redefine operational efficiencies and expand risk assessment capabilities.
Opportunities Ahead
For businesses, early engagement with insurers, clear data sharing, and proactive risk management are essential to navigate this shifting landscape. For insurers, leveraging technology and focusing on sustainability will be critical to staying competitive in a market that increasingly values transparency and adaptability.
Final Thoughts
Aon’s report offers a comprehensive view of the challenges and opportunities within the Swiss insurance market. As businesses adapt to changing conditions, these insights serve as a guide to informed decision-making in an unpredictable environment.
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