Aon has introduced its Growth Decision Framework, a consulting service designed to enhance insurer performance and market cycle resilience.
This service, stemming from Aon’s Strategy and Technology Group, aligns with insurers’ unique risk appetites and goals, particularly as they prepare for January 2025 renewals.
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The framework is the result of a proprietary study by Aon, which analysed more than 100 global (re)insurers.
It identified companies that have consistently excelled through market cycles, examining traits such as risk appetite, agility, data analytics, underwriting, talent, distribution, and capital management.
Aon’s service aims to help clients emulate these best-in-class characteristics.
Aon collaborates with insurers to refine their portfolios, considering factors such as expected profitability, underwriting result volatility, capital requirements, and risk-adjusted returns.
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By GlobalDataThis approach is expected to enable insurers to prioritise market segments, access benchmarks, comprehend distribution channels, assess competitors, and devise investment and execution plans.
It will also guide the development of future workforce and technology strategies.
Aon risk capital and reinsurance CEO Andy Marcell said: “Evidence-based decision frameworks can help insurers make better decisions with clarity and confidence, even in the most challenging environments.
“Aon’s Growth Decision Framework aims to empower leaders to optimise their capital deployment and to continuously adapt to market changes. This process might involve retaining strategically important businesses, addressing underperforming segments, and diversifying for future profitability.”
The launch comes as Aon’s “Ultimate Guide to the Reinsurance Renewal – September 2024” report unveiled the past 18 months of significant volatility for insurers.
These challenges include navigating heightened losses and dwindling reinsurance capacity.
Additionally, Aon’s “2024 Climate and Catastrophe Insight” report found that a mere 31% of 2023’s economic losses from natural catastrophes were insured.
Its “Transformative Trends” study forecasts that emerging exposures could present over $200bn in market potential by 2030.
Recently, Aon was in the news, alongside Marsh McLennan, for urging the reinsurance industry to utilise its capital and expertise to support Ukraine’s recovery.
