Page 22 - The Insurance Times September 2024

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Aon publishes global in- in certain high-risk sectors, where Beyond this, there has been a rise in
placement outcomes were less mandatory requirements in many
surance market insights for favourable. countries for the purchase of student
Q2 2024 Aon noted that US casualty exposures, travel insurance prior to study abroad.
The global insurance market in the both domestic and international, faced Additionally, student mobility is rising,
second quarter of 2024 continued its increased scrutiny due to concerns with many participating in educational
growth trajectory, underpinned by over reserve deterioration from previ- programs, internships, and volunteer
strong profitability reported by many ous years and ongoing issues related opportunities overseas. This has cre-
insurers in 2023 and improvements in to nuclear verdicts and adverse litiga- ated demand for more tailored insur-
the reinsurance sector. tion trends. ance solutions specific to those stu-
According to the latest report from Risks with US exposure, particularly in dents’ specific needs.
Aon, the market remained focused on heavy industries, experienced rate in-
disciplined underwriting and pricing creases, more restrictive terms and Global marine re/insur-
strategies aimed at long-term profit- conditions, and higher Umbrella at- ance faces growing risks as
ability and programme stability. In- tachment points. In contrast, well-per-
surer growth ambitions contributed to forming risks and those without US vessel size and complexity
a competitive and well-capitalised en- exposure generally benefitted from increase
vironment, with ongoing price mod- healthy competition as insurers sought The global marine insurance industry is
eration, flexible underwriting, and the growth opportunities.
experiencing heightened risks due to
availability of various coverage op- the increasing size, value, and com-
tions, particularly for preferred risk Student travel insurance plexity of vessels, according to Wang
categories.
predicted to boom in the Xing, senior marine underwriter at
During Q2, competition driven by in- Swiss Re Asia, in partnership with the
surer growth ambitions created next decade General Insurance Association of
favourable conditions in the Property The worldwide student travel insur- Singapore (GIA).
market for many risks. The US market, ance sector is expected to rise from a
This growth in potential severity is lead-
in particular, saw its most favourable current value of $2.8 billion in 2024 to ing to a significant impact on the mar-
conditions in nearly seven years, with $15.5 billion in 2032, according to a ket, particularly when major losses
pricing outcomes for desirable risks report by Allied Market Research. occur.
ranging from single-digit increases to The rise is being driven by a number of
low double-digit decreases. Data from the International Union of
factors, including a general increase in Marine Insurance (IUMI) underscores
However, market conditions were awareness and demand for student the substantial influence that major
more challenging in regions such as the travel insurance among students and
losses have on the marine hull insur-
Nordics, Brazil, and Mexico, as well as educational institutions.
ance market. From Underwriting Years
20 September 2024 The Insurance Times