Pricing and capacity are starting to improve for errors and omissions and cyber insurance buyers, Aon PLC said in a report published on Wednesday.
Although insurers continue to emphasize “conservative messaging” regarding pricing, underwriting and coverage, and pricing remains significantly higher than during the same period in 2020, renewal growth is slowing, the report said, and about $50 million in new excess capacity is available from new insurers entering the E&O/cyber market.
The report says some customers are experiencing flat to falling prices in cases where there were “overcorrections” in 2021.
It says coverage continues to be reviewed for wartime exclusions, territory restrictions, systemic risk and associated coverages such as media and cybercrime or theft.
“The conflict in Ukraine is a common focus for insurers, both in terms of how it changes risk for a particular company, and how global responses to these events may affect insurer compliance,”; the report said.