UK insurance market unchanged and buyer-friendly in 2025: Aon

The UK insurance market remained unchanged and buyer-friendly so far in 2025, with continued softening across most lines, though insurance buyers should remain mindful of broader global uncertainty and volatility that could impact the industry, according to Aon.

Aon noted that solid insurer results are helping drive improved conditions for buyers. In recent months, many insurers have reported strong full-year results.

Following an upward spike in 2020, combined ratios have generally trended downward. In the latest results released, many key insurers reported underwriting profits.

Emerging growth plans among insurers are expected to further increase competition and market supply, offering insureds additional opportunities—at least in the short term.

So far in 2025, the market has continued to soften across most lines, with average rate reductions of 11%–20%. However, motor is an outlier, with rates still rising marginally.

Insurance capacity is ample, and underwriting has become more flexible. Limits have increased, deductibles have remained flat, and coverage has broadened as insurers compete on policy terms.

To achieve the best results, Aon advises engaging early at renewal with brokers and insurers, creating opportunities to broaden cover, restructure programmes, and take advantage of favourable market conditions.

Despite these conditions, Aon urges businesses to review their overall risk strategy and explore opportunities to develop and refine their risk transfer approach.

Aon warned of broader global uncertainty and volatility, stemming from specific macroeconomic issues such as trade tariffs, as well as wider geopolitical challenges. Aon suggests insurance buyers should be mindful that these factors could impact the insurance industry in the coming months.

Josh Webb, Head of London Broking, Commercial Risk at Aon UK, said, “We see no reason why the current market conditions will not continue, certainly for the short term, and even accelerate and soften further in some areas as we go into the second half of this year.”

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