But claims costs keep rising, with more single plaintiff settlements or verdicts of greater than $10 million, dubbed as "nuclear," and of $100 million, dubbed as "thermonuclear."

As for contractors, markets also are stable but involve what Aon calls a "hyper-vigilance around limit aggregation," the total amount an insurer will pay for all covered claims during a policy period.

Insurers are concerned and have a "growing unease" about "social inflation"—the tendency of juries to award ever-bigger damage awards—combined with cost inflation, reports Aon. Insurers have faced claims payments on several large auto verdicts or settlements against designers and constructors "which allege a blend of inadequate workmanship and design negligence related to road construction."

Insurers working in North America "continued to seek higher retentions across the board in response to rising costs," says Aon.

Retentions are similar to deductibles, but insurers collect and keep retained funds for the term of a policy in case there is a claim.

In the U.S., auto liability and auto physical damage renewal rates "will continue to increase in 2025 as insurers struggle for profitability" with these policies, Aon states. 

The London, U.K.-based broker, whose North American headquarters is in Chicago, says automobile liability single-plaintiff verdicts will continue to increase. Requirements for more underwriting data and technology-supported physical controls have become standard, it says. Companies with large fleets also are looking at more alternative types of insurance solutions.

Insurers seek to trim limits. "As is the case with annual practice policies," writes Aon, "insurers that 12 months ago would have provided $20 million to $25 million on a single project or rolling program are now looking to trim that down to $10 million to $15 million." 

It says the trimming is "most pertinent" in difficult project classes such as tunnels and bridges, policies with terms of seven years and projects in New York.