Organisations facing increasing property program volatility can benefit from alternative risk transfer strategies, unlocking access to strategic sources of capital and supporting long-term program stability, according to Aon.
The long-term view of property risk is increasingly volatile and complex. Risk buyers are currently navigating two opposing dynamics in the global property insurance market: pricing conditions continue to ease, while the growing frequency of natural catastrophes has the potential to shift the market toward harder conditions, especially if a major event occurs.
“The long-term trajectory of property risk is complex,” says Ryan Barber, Global Head of Property at Aon. “Heightened climate risk, increasing replacement costs and demographic shifts to cat-prone areas are putting more pressure on the market. This is a very favorable trading window for businesses to take a long-term view and future-proof their programs.”
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