The global commercial insurance market moderated further in Q3, with prices still rising a touch in most regions, but buyers can now access ample capacity backed by stable limits, deductibles and coverage, according to Aon.\r\n\r\n\u201cWhile the Q3 insurance market continued to moderate as insurers sought to balance growth with profitability, divergent conditions among different risk types persisted,\u201d the broker says in its Q3 Global Market Insights report.\r\n\r\nFavoured and well-performing risks, including significant portions of the financial lines market, saw an expansion of underwriting appetite and an increase in available capacity, the report explains.\r\n\r\nBut higher-risk industries, natural catastrophe-exposed risks, loss-impacted risks and those not demonstrating mature risk management practices, saw the most significant rate increases and capacity constraints in the quarter, Aon adds.\r\n\r\nThe broker\u2019s report says that the average cost of commercial insurance was up between 1% and 10% in EMEA and the UK, North America and Latin America during the third quarter. Overall rates were flat in Asia Pacific.\r\n\r\nAon says that adverse claims trends pressured pricing across auto and casualty, while cyber and D&O buyers experienced softening as incumbent insurers sought to retain and grow their portfolios.\r\n\r\nIt adds that property pricing remained \u201cvolatile\u201d due to concerns related to inflation, high reinsurance costs, climate change and nat cat exposures. Aon notes that pricing remains \u201cchallenging\u201d for US-exposed property risks.\r\n\r\nBut while pricing is still rising across most regions, overall capacity was described as ample.\r\n\r\n\u201cCapacity was sufficient across most products and risk types as established insurers expanded their appetite, and other insurers (re)entered markets targeted for growth,\u201d says Aon.\r\n\r\nBut it warns that capacity for nat cat-exposed property risks remained constrained and expensive, driving continued use of alternative solutions including index-based products, self-insurance and captives.\r\n\r\nAon says that underwriting stringency gave way to flexibility during Q3 as insurers focused on profitable growth. But carriers remain disciplined, with risk quality and differentiation a top priority.\r\n\r\n\u201cUse of data and analytics to support decision making continued to gain prevalence. Superior results were achieved through early engagement with insurers and robust submission details, including descriptions of valuation methodologies, risk-control practices, improvements implemented, and lessons learned from past claims,\u201d says the broker.\r\n\r\nIt adds that limits were flat during the last quarter as most placements renewed with expiring amounts.\r\n\r\nHowever, property limits had to rise because of economic inflation, which, together with social inflation and \u201cnuclear\u201d liability verdicts, also impacted casualty limits.\r\n\r\nLarger limits were available on cyber and D&O placements as clients sought to restore those reduced in recent years.\r\n\r\nFlat deductibles were achieved on most placements, says Aon. However, increases and minimum deductibles were required on some poor-performing risks and higher-risk sectors.\r\n\r\nAon says that lower deductibles were available on some well-performing classes, and risks during Q3 but were often declined by clients due to \u201cincommensurate\u201d additional premiums.\r\n\r\nMeanwhile, wordings and coverage were generally stable.\r\n\r\nCoverage enhancements, supported by quality underwriting data, were available in areas targeted for growth as insurers continued to leverage coverage terms as a differentiator, says Aon.\r\n\r\nBut some exclusions, such as communicable disease, war and territory restrictions remained non-negotiable, it adds.