Climate Opportunities for Insurers
Learn how to navigate climate volatility and seize opportunities.
Why Do Insurers Play a Critical Role in Addressing Climate Change?
Natural disasters caused $343 billion in economic losses in 2022 — of which $130 billion was covered by insurance. With climate change driving new extreme weather records, insurers increasingly need to quantify the impact of climate risk.
Simultaneously, the industry plays a critical role in driving global resilience and transitioning to net-zero. In response, Aon helps insurers make better decisions to plan for climate change. This includes meeting goals to deliver innovative products to meet customer demand, navigate regulatory changes and remain profitable.
How Aon Can Help
At Aon, we help (re)insurers navigate the expected volatility of an evolving climate and demonstrate how climate change is an opportunity both now and in the future.
- Establish a clear strategy and governance to drive transformational change; introduce new processes and technology to existing activity and establish new business models.
- Manage physical risk by creating a custom view of risk to manage clients’ unique portfolios and transfer risk into traditional and alternative markets.
- Transition to net-zero by identifying and quantifying the risks and opportunities within our clients’ portfolios and supporting key investments or steps to mitigate risks.
- Unlock opportunities for growth by building on these foundations, our consultants deliver environmental, social and governance (ESG) strategies to unlock growth opportunities that meet customer demand.
Our advice goes beyond analyzing the results of any individual approach, to helping organizations develop holistic climate risk programs that can navigate the inherent uncertainty in climate change to make better decisions on risk management.
How We Deliver Customized Climate Solutions
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01
Discover
We begin by discovering the unique risk and opportunities an evolving climate poses to your portfolio and company’s growth.
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02
Develop
Our experts then work to develop capital strategies that reflect those physical and transitional climate risk opportunities.
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03
Deliver
Delivery includes climate analytics for assets and liabilities, net-zero underwriting and product strategy and regulatory and rating agency advice.
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04
Review
We integrate this view of risk into reinsurance, underwriting and portfolio management strategies while helping to educate and review strategies with your internal stakeholders, regulators and reinsurers.
Why Work with Aon
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Academic Climate Collaborations
Academic climate collaborations for data-driven insights from 14 institutions delivering climate research directly to our clients for an enhanced understanding of the risk and actionable insight
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Forward-Looking Climate Diagnostics
Forward-looking climate diagnostics powered by our advanced data and analytics to identify the highest risk areas now and in the future
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Thirty Years of Experience
30+ years of experience applying a toolkit of catastrophe models for a comprehensive view of risk, identifying all sources of model miss and informing bespoke adjustments
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Impact Forecasting's Modeling Suite
Impact Forecasting’s modeling suite delivers 125+ catastrophe models to provide an alternative perspective on peak perils and less-modeled regions, incorporating insights from our climate research
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Data-Driven Approach to ESG
Data-driven approach to meeting ESG targets and regulatory requirements, including their consideration in rating criteria
30+
years of experience applying a toolkit of catastrophe models for a comprehensive view of risk, identifying all sources of model miss and informing bespoke adjustments
