Kathmandu. The global commercial insurance market has entered 2026 with favorable conditions for buyers. This includes adequate capacity, flexible underwriting, and competitive pricing on large insurance plans.
According to Aon’s Q1 2026 Global Insurance Market Insights Report, strong insurance company profitability and supportive reinsurance renewals have driven the current environment. This has enabled organizations to achieve higher thresholds, greater cover, and improved program structures.
However, the report warns that the results are becoming more variable. Pricing and conditions are increasingly influenced by risk quality, geography, industry risk and resilience planning, the report said.
According to Joe Peischer, chief executive of Risk Capital at Aon, rising geopolitical tensions are testing the way we think about coverage, capacity and financial statement security. “The risk of conflict, supply chain disruptions and restrictions are simultaneously impacting insurance policy language, capability and claims,” he said. This is making rapid risk assessments increasingly important for organizations. ’
Tensions in the Middle East are already affecting underwriting purposes, pricing and claims activity across multiple lines, including maritime, aviation, property, cyber and political violence. Disruptions to key trade sea routes such as the Hormuz have increased supply chain risks, contributed to energy price volatility and prompted both active insurance claims and caution notices.
Marine insurance has been particularly affected. Insurance companies are re-examining how to price and cover war-related risks.
“Rising tensions between the United States and Iran have increased risks to key shipping routes and forced maritime war insurers to adjust,” said Phil Smejke, global industry expert for transportation and logistics at Aon. ’
Despite this, Smejke says overall maritime market conditions remain soft, with adequate capacity and continued support from the London market.
“Insurers are often tightening the policy language and adjusting capacity more quickly before there are obvious operational or financial impacts,” Aon said. –Agency
