Aon says insurers must embed relevance to outperform in soft markets

The global reinsurance capacity reached a record $720b in 2025.

The abundance of capital, alongside geopolitical pressures and flat interest rates, is putting pressure on underwriting margins and forcing insurers to differentiate through strategy and execution rather than investment yield, according to Aon.

The global reinsurance capacity reached a record $720b in 2025, with first-half catastrophe bond issuance hitting an all-time high of $17b.

Aon has released new analysis urging insurers to embed strategic relevance into every decision to outperform through the market cycle. 

The report highlights five imperatives — growth strategy, capital alignment, data-driven decision-making, channel insight, and talent transformation — as key drivers of sustainable performance.

Commercial insurance buyers are increasingly demanding multi-year, multi-line risk financing solutions. 

Aon notes that insurers must shift from being product suppliers to performance partners, offering structures that are agile, transparent, and aligned with client objectives.

Aon’s review of 120 insurers between 2013 and 2024 shows that carriers who align strategy with relevance consistently deliver better growth and returns, even in softening markets. 

The report identifies seven traits of top-performing insurers, including clear risk appetite, speed and agility, advanced data analytics, underwriting innovation, strong talent pipelines, distribution strategy, and capital efficiency.

Aon concludes that insurers who embed relevance across capital, talent, and underwriting decisions are best positioned to outperform despite growing risk and competitive pressure.