Kathmandu. Commercial insurance buyers are benefiting from increased capacity and intense competition. But geopolitical tensions, rising claims and more detailed risk assessments are putting pressure on some parts of the market.
According to Aon’s Q2 2026 Global Insurance Market Insights report, many key business lines are offering rate cuts, increased coverage and better terms. While capacity and competition are key drivers of market conditions, the use of technology is enabling insurance companies to evaluate risk in detail.
Geopolitical tensions are also having a direct impact, especially in the insurance market. The ongoing conflict in the Middle East is forcing insurers to increase scrutiny of risks related to maritime, aviation, terrorism, political violence, energy and trade.
According to Christian Hoffman, CEO of Aon’s Global Commercial Risk Solutions, the biggest impacts have been on sea hulls and war, maritime P&I, aviation and terrorism, and political violence. This is where insurance companies are adopting greater underwriting discipline, repricing risks and putting more emphasis on the terms and conditions of insurance policies. “Despite the tough outlook, there’s still the potential for a well-managed risk,” Hoffman said. ’
The conflict is also creating significant risks for businesses through concerns about supply chain disruptions, energy price fluctuations and sudden trade disruptions. The rise in claims is another major concern. Property claim prices are rising due to increased labor, transportation and maintenance costs. However, liability claims are being affected by rising legal, medical and contract costs.
According to Aoun, those pressures are particularly acute in commercial automobiles and U.S. casualty insurance. These are the exceptions of otherwise favourable market conditions.
The report said the current market provides an opportunity for businesses to strengthen their insurance programs and review risk transfer strategies before conditions become more difficult. –Agency
