In the property section, Aon said that following a tumultuous 2008, the property market experienced mild hardening during the first half of 2009 due to the global financial crisis and previous heavy property losses from natural catastrophe events. Property schedules with little or no natural catastrophic exposures remain competitive. Insureds should expect renewed competition and modest downward pressure on rates into 2010.

The casualty market remains soft and competitive with low rate decreases resulting in lower premiums for many insureds. Primary automobile experienced an average increase of less than one percent in the second quarter of 2009, the first increase in rate on any casualty line in several years. Soft market conditions are expected to continue into 2010. Carriers will be challenged to sustain growth in the coming years due to competition and decreasing margins.

For D&O coverage, Aon says the economic turmoil has worked itself through the banks, insurance companies, investment management firms and hedge funds. In the financial institutions marketplace, rates are increasing significantly, capacity is shrinking and coverage terms are tightening. On the other hand, the market for all other sectors continues to be extremely competitive with rates trending down, ample capacity and the broadest terms and conditions seen in years. Exceptions seen in the commercial realm stem from industries rife with bankruptcies. Most insureds should expect to see continued stabilization of rates in the short term, while rates for financial institutions are expected to continue to increase.