An Ever-Complex Global Tax Environment Requires Strong M&A Risk Solutions
Today’s global tax environment grows ever more complex. Tax insurance is a potential solution to help provide certainty and protect value in M&A transactions.
Key Takeaways
-
International tax structures and their legal, financial and business implications have grown rapidly in complexity.
-
Risk of a potential tax challenge can stand in the way of a successful M&A deal.
-
Tax insurance can address uncertainty from tax complexity by transferring the risk of successful tax authority challenges to the insurance markets.
Merger and acquisition dealmakers face a variety of economic headwinds as global M&A activity seeks to rebound in 2023 after a 35 percent decline during the first nine months of 2022.1 Further, an ever-complex international tax environment is creating additional complexity and uncertainty, requiring companies to not only heighten scrutiny in tax due diligence, but seek new ways of mitigating deal-related tax risks.
Today’s international tax structures and their legal, financial and business implications have grown rapidly in both size and complexity, and the impact of an unexpected tax challenge can significantly compromise the value from a deal. Of global significance:
- In the last decade international revelations around tax evasion and aggressive tax planning led G20 countries and the Organization for Economic Co-operations (OECD) to address these issues through Base Erosion and Profit Sharing (BEPS) 1.0, published in 2015.
- Its potential successor, BEPS 2.0 and its pillars one and two, addresses tax challenges arising from the digitalization of the economy. The OECD expected BEPS 2.0 to be delivered as early as 2020. While it has been agreed upon by participating countries it has yet to be implemented. Of note, pillar two would require multinational businesses with revenues higher than EUR750 million to pay at least 15 percent tax in each jurisdiction in which they operate. This would likely have wider-reaching consequences for international M&A activity as it would have an uneven impact on the attractiveness of different target companies and may favor certain types of bidders over others.
- Tax authorities in a number of international jurisdictions are scrutinizing transactional activity, particularly in relation to private equity capital structures. As a result, tax due diligence is critical, both for improving buyer visibility on deal-related tax risks and mitigating any potential valuation impact.2
- In the U.S., meanwhile, as the IRS staffs up amid an $80 billion funding boost, corporations and business owners are bracing for the possibility of more IRS audits and enforcement. This influx of funding is an overdue correction for the agency, which has endured steep budget cuts over the past decade.3
It’s no wonder then that tax risk is on the rise in the minds of dealmakers. Half of those surveyed warn tax risk is now significantly more acute to deal success than in the past, according to Aon’s M&A Risk in Review 1H 2022. Dealmakers also warn of growing tax risks on multiple fronts. More than a quarter (28 percent) name the proliferation of anti-abuse rules as their most pressing concern. Others include entity classification rules and increases in tax rates.4 Fortunately, there is a way to mitigate these risks, and other M&A-related tax exposures as well.
Tax Insurance as an Evolving Risk Management Tool
Tax insurance and other forms of contingent risk insurance are some of the evolving M&A strategies being implemented in response to emerging trends and changing market needs. Tax insurance is a potential solution to tax complexity that transfers the risk of successful tax authority challenges to an insurer.
Its usage has grown in M&A as a precautionary measure against unexpected tax assessments, clawbacks of anticipated tax benefits and future cash outlays. Tax insurance was designed to help protect businesses in the event a position fails to qualify for its intended tax treatment, and can be used to mitigate risk in a variety of transactional situations:
- To cover losses including taxes payable, interest and penalties, and gross-up amounts for tax due on insurance proceeds. It can also cover contest costs tied to the defense of the position.
- To protect buyers from unanticipated pre-closing tax liabilities on positions inherited from sellers in an M&A transaction. It has also been popular among renewable energy investments involving tax credits to protect anticipated tax benefits.
- In the case of an acquisition of a target with a large potential tax exposure, tax insurance can help move both parties past a difficult or even insurmountable negotiation.
- As a strategic financial tool, tax insurance can benefit a seller looking to cover its indemnity obligation for pre-close tax exposures or allows a buyer to insure itself against a heightened tax issue rather than seek a special indemnity that can hinder the deal.
- As a financial planning tool, it can provide a backstop should an investment or tax position fail to qualify under different interpretations by covering assessed amounts (tax, interest, etc.) and defense costs to make the policyholder economically whole.
Tax insurance appetite extends beyond M&A activities to non-transactional corporate risk as well. That can include corporate tax planning, restructurings, and high net worth personal or estate tax exposures.
50%
Global dealmakers who view tax risk as acute to M&A deal success.
Source: M&A Risk in Review 1H, 2022
M&A Tax Insurance: What Success Looks Like:
Transfer pricing across multiple jurisdictions
A business was exiting a global joint venture but retaining the U.S./Canadian operations of its business. In connection with the transaction, the existing transfer pricing model was terminated, and a new model was implemented with its former partner for use with certain intellectual property.
Revising the intellectual property structure included termination of existing licensing agreements, entrance into new licensing agreements, and assignment of certain intellectual property/“know-how” to which minimal value was attributed. The business was also treating the entrance into the new licensing arrangements as a “sale” of intangibles allowing it to amortize its basis. Due to the complexity and large potential exposure, the business was seeking protection for the transfer pricing involved in the transaction. The broker was able to structure and secure a $280 million tax insurance program with A-rated or better insurers, protecting the business from potential transfer pricing adjustments on the actions taken to revise the intellectual property structure across multiple jurisdictions as well as other tax risks associated with the transaction.
In the event of a successful tax authority challenge, the insurance would cover the additional withholding and/or income taxes, plus interest and penalties, in U.S. dollars, Euros, or Canadian dollars, depending on the relevant jurisdiction.
How Tax Insurance Helped Multinational Group Reorganization in the EU
A multinational company sought to re-domicile intellectual property from one EU jurisdiction to another. Its tax advisors developed the transaction steps plan and were confident that the transaction would not give rise to capital gains tax, corporate tax or stamp duty as various exemptions should apply.
Due to the complexity of the transaction steps and criteria for exemption qualification, the business used tax insurance to protect against a successful challenge to the tax-free nature of the transaction. Use of tax insurance was “baked in” to process from its earliest planning stages.
The business was then able to complete its restructuring and has a “sleep easy” that no unexpected and catastrophic tax event will occur in future as a result.
1 M&A rebound unlikely in 2023 after 35% slump: S&P Global
2 Maximizing Deal Opportunities with M&A Insurance in a Buyer’s Market
3 Tax Insurance May Serve as a Salve to Fears of IRS Enforcement | Bloomberg Tax
Talk With Us
If you would like to discuss any aspects of these insights please do not hesitate to get in contact with our team.
David McCann
Executive Director, M&A and Transaction Solutions - EMEA
[email protected]
Jessica Harger
Managing Director, M&A Transaction Solutions – North America
[email protected]
General Disclaimer
The information contained herein and the statements expressed are of a general nature and are not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information and use sources we consider reliable, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.
Terms of Use
The contents herein may not be reproduced, reused, reprinted or redistributed without the expressed written consent of Aon, unless otherwise authorized by Aon. To use information contained herein, please write to our team.
Aon's Better Being Podcast
Our Better Being podcast series, hosted by Aon Chief Wellbeing Officer Rachel Fellowes, explores wellbeing strategies and resilience. This season we cover human sustainability, kindness in the workplace, how to measure wellbeing, managing grief and more.
Aon Insights Series Asia
Expert Views on Today's Risk Capital and Human Capital Issues
Aon Insights Series Pacific
Expert Views on Today's Risk Capital and Human Capital Issues
Aon Insights Series UK
Expert Views on Today's Risk Capital and Human Capital Issues
Construction and Infrastructure
The construction industry is under pressure from interconnected risks and notable macroeconomic developments. Learn how your organization can benefit from construction insurance and risk management.
Cyber Labs
Stay in the loop on today's most pressing cyber security matters.
Cyber Resilience
Our Cyber Resilience collection gives you access to Aon’s latest insights on the evolving landscape of cyber threats and risk mitigation measures. Reach out to our experts to discuss how to make the right decisions to strengthen your organization’s cyber resilience.
Employee Wellbeing
Our Employee Wellbeing collection gives you access to the latest insights from Aon's human capital team. You can also reach out to the team at any time for assistance with your employee wellbeing needs.
Environmental, Social and Governance Insights
Explore Aon's latest environmental social and governance (ESG) insights.
Q4 2023 Global Insurance Market Insights
Our Global Insurance Market Insights highlight insurance market trends across pricing, capacity, underwriting, limits, deductibles and coverages.
Regional Results
How do the top risks on business leaders’ minds differ by region and how can these risks be mitigated? Explore the regional results to learn more.
Human Capital Analytics
Our Human Capital Analytics collection gives you access to the latest insights from Aon's human capital team. Contact us to learn how Aon’s analytics capabilities helps organizations make better workforce decisions.
Insights for HR
Explore our hand-picked insights for human resources professionals.
Workforce
Our Workforce Collection provides access to the latest insights from Aon’s Human Capital team on topics ranging from health and benefits, retirement and talent practices. You can reach out to our team at any time to learn how we can help address emerging workforce challenges.
Mergers and Acquisitions
Our Mergers and Acquisitions (M&A) collection gives you access to the latest insights from Aon's thought leaders to help dealmakers make better decisions. Explore our latest insights and reach out to the team at any time for assistance with transaction challenges and opportunities.
Navigating Volatility
How do businesses navigate their way through new forms of volatility and make decisions that protect and grow their organizations?
Parametric Insurance
Our Parametric Insurance Collection provides ways your organization can benefit from this simple, straightforward and fast-paying risk transfer solution. Reach out to learn how we can help you make better decisions to manage your catastrophe exposures and near-term volatility.
Pay Transparency and Equity
Our Pay Transparency and Equity collection gives you access to the latest insights from Aon's human capital team on topics ranging from pay equity to diversity, equity and inclusion. Contact us to learn how we can help your organization address these issues.
Property Risk Management
Forecasters are predicting an extremely active 2024 Atlantic hurricane season. Take measures to build resilience to mitigate risk for hurricane-prone properties.
Technology
Our Technology Collection provides access to the latest insights from Aon's thought leaders on navigating the evolving risks and opportunities of technology. Reach out to the team to learn how we can help you use technology to make better decisions for the future.
Top 10 Global Risks
Trade, technology, weather and workforce stability are the central forces in today’s risk landscape.
Trade
Our Trade Collection gives you access to the latest insights from Aon's thought leaders on navigating the evolving risks and opportunities for international business. Reach out to our team to understand how to make better decisions around macro trends and why they matter to businesses.
Weather
With a changing climate, organizations in all sectors will need to protect their people and physical assets, reduce their carbon footprint, and invest in new solutions to thrive. Our Weather Collection provides you with critical insights to be prepared.
Workforce Resilience
Our Workforce Resilience collection gives you access to the latest insights from Aon's Human Capital team. You can reach out to the team at any time for questions about how we can assess gaps and help build a more resilience workforce.
More Like This
-
Article 7 mins
Key Trends in U.S. Benefits for 2025 and Beyond
As healthcare costs continue to rise, employers are trying to balance the need to take care of their workers with the need to keep costs under control. Aon’s 2025 U.S. Health Survey provides insights into the choices employers are making, and their potential effects on costs.
-
Article 6 mins
Managing Non-Financial Risks to Build Organizational Resilience in the Financial Institutions Industry
Non-financial risks are often difficult to predict and quantify, yet present a real threat to financial institutions. In this volatile environment, risk management is playing a greater role in creating business resilience and identifying where capital should be deployed.
-
Article 9 mins
Ensuring Operational Stability Post-Spin-Off: A Conversation with Daniel Halter from Sandoz
Daniel Halter, Director Global Insurance at Sandoz, discusses, how smart risk & insurance management supported the Sandoz core mission to provide affordable, off-patent medicines to patients who need them most with Ana Serdarevic, Head of Aon’s Transaction Advisory Services for DACH.
-
Article 8 mins
U.S. Rail Sectors Work to Mitigate Capacity and Pricing Risk Issues
U.S. freight and commuter rail industries are facing excess liability and property issues for different reasons. These railroads are critical to infrastructure and vital to the economy, yet finding effective solutions remains complex.
-
Article 11 mins
D&O Risks and Considerations for Businesses Planning an IPO
As private companies prepare for an IPO, they face increased risks that require directors and key leaders to adopt essential risk management strategies to ensure a smooth transition.
-
Article 10 mins
How Public Entities and Businesses Can Use Parametric for Emergency Funding
As climate change intensifies the frequency and severity of extreme weather events, public entities and businesses need more flexible funding solutions. Parametric stands out as an adaptable resource capable of swiftly responding to potential disasters.
-
Article 17 mins
How Insurance Helps Unlock Capital for Hydrogen Projects Amid Financing Pressures
Funding challenges due to macroeconomic factors have prevented several green and blue hydrogen projects from getting off the ground. Organizations facing hurdles in accessing capital can work with risk and insurance experts to expedite projects and help make the promise of hydrogen a reality.
-
Article 11 mins
Strengthening Human Capital Strategies to Attract Talent in the Food, Agribusiness and Beverage Industry
Learn how strong human capital strategies can help recruit, retain and motivate vital talent in a competitive and evolving job market.
-
Article 7 mins
Trends U.S. Corporate Boards Should Prepare for in 2025
As corporate boards meet to discuss strategy, including any changes to executive compensation, there are key trends to consider for the year ahead.
-
Article 6 mins
Leading the Biofuels Transition: Risk Strategies to Cut Through Complexity
Companies aiming to be a net-zero company may face many challenges during the biofuels transition. Read more on risk strategies to cut through complexity.
-
Article 6 mins
DC Pension Schemes: Improving Investment Returns
With DC schemes growing across Europe, many organizations are realizing the importance of ensuring strong performance from their investments. Here’s how asset owners and managers can optimize DC outcomes through the right investment strategy.
-
Article 9 mins
Developing a Paid Leave Strategy That Supports Workers and Their Families
With no federal paid leave law in the U.S., employers have limited guidance in designing equitable and comprehensive paid leave programs to support their workforce. Looking beyond compliance to focus on strategy and values will help create fair and well-designed policies.
-
Article 8 mins
Unlock the Potential of Alternative Risk Transfer Solutions
Risk managers are increasingly looking to Alternative Risk Transfer Solutions for potential enhancements in managing risk.
-
Article 8 mins
2025 Salary Increase Planning Tips
Amid economic uncertainty, companies are taking a careful approach to hiring and salary planning — one that includes focused hiring strategies, revising salary budgets and implementing measures that respond to the current economic environment.
-
Alert 7 mins
Client Alert: Responding to Heightened Risk in the Middle East
The current operating environment in the Middle East is increasingly complex and multifaceted, characterized by ongoing conflicts in Gaza, Israel, Lebanon and neighboring states, alongside significant changes in the business and insurance environment.
-
Article 8 mins
Florida Hurricanes Not Expected to Adversely Affect Property Market
Hurricanes Helene and Milton insured loss estimates are expected to fall between $34 billion and $54 billion. Healthy, well-capitalized insurance and reinsurance markets are positioned to absorb those losses.
-
Article 17 mins
Q3 2024: Global Insurance Market Overview
Buyer-friendly conditions continued across much of the global insurance market in Q3, painting a largely positive picture as we head into year-end renewals.
-
Article 10 mins
Why It’s Key to Conduct Cyber Due Diligence in Financial Services During Mergers and Acquisitions
A successful M&A strategy relies on due diligence across financial, legal, human capital, technology, cyber security and intellectual property risks. As cyber threats become more complex, robust cyber due diligence in private equity and acquisitions is increasingly necessary.
-
Article 8 mins
The Evolving Threat of Cargo Theft: 5 Key Mitigation Strategies
Cargo theft in the transportation industry is escalating, driven by sophisticated criminal tactics that exploit both physical and digital vulnerabilities. Businesses must adopt proactive risk management strategies to counter these evolving threats.
-
Article 11 mins
4 Megatrends Affecting Middle Market Organizations in North America
Trade, technology, weather and the workforce are interconnected trends shaping the future of business in North America. Understanding them is key to long-term resilience.
-
Article 9 mins
Building Resilience in a Buyer-Friendly Cyber and E&O Market
Competition and capacity are dominating the cyber liability market and pricing remains favorable as a result. Taking advantage of the current buyer’s market to build sustained cyber resilience is the key to success.
-
Article 10 mins
How Risk Transfer Solutions Increase Capital Access in Renewable Energy M&A Deals
The growing renewable energy sector is boosting M&A activity. Risk transfer solutions can help unlock capital access in these transactions.
-
Article 7 mins
Managing Human Capital to Drive Innovation in Life Sciences
Digitalization presents both opportunities and challenges in life sciences, driving new organizational approaches to human capital to keep up with evolving talent needs while building a resilient workforce.
-
Article 5 mins
Connected Perspectives: Better Decisions on Digitalization for Financial Institutions
As financial institutions reshape human capital strategies for the digital age, leaders face pressure to balance the risks and opportunities of digitalization.
-
Article 9 mins
The Next Evolution of Wellbeing is About Performance
Employers are concerned that previous wellbeing strategies aren’t moving the needle enough. But when wellbeing is part of an organization’s culture, it has positive effects on costs, engagement and productivity.
-
Article 6 mins
How Human Capital Data Enhances Risk Management for Financial Institutions
Financial institutions can increase their resilience to volatile threats through enhanced risk management frameworks and innovative models powered by people data and technology.
-
Article 10 mins
How Financial Institutions can Prepare for Pay Transparency Legislation
As the deadline for implementing the EU Pay Transparency Directive fast approaches, some financial institutions feel unprepared to comply. These five steps can help guide the way through the upcoming regulatory landscape.
-
Article 9 mins
4 Ways to Foster a Thriving Workforce Amid Rising Health Costs
Thriving organizations rely on thriving employees to succeed. With healthcare costs on the rise, it’s time for employers to challenge the status quo in providing health benefits. Organizations need to consider the human side of these increases and take bold action to achieve better outcomes.
-
Article 9 mins
How Social Inflation is Impacting the Aviation Industry
The aviation industry is watching the rise in nuclear verdicts with concern as social inflation and associated risks continue to squeeze the sector. Organizations should review their risk management processes to limit the dollar value of future losses.
-
Article 12 mins
Navigating AI-Related Risks: A Guide for Directors and Officers
As AI evolves, directors and officers must maneuver through a complex landscape of regulatory and legal risks. Implementing best practices around the use of AI and robust governance-focused risk mitigation can help manage exposures.
-
Article 11 mins
A Middle Market Roadmap for Cyber Resilience
Middle market organizations face unique challenges in the ever-changing cyber environment, requiring holistic insurance solutions and enhanced resilience readiness to manage risks that could impact profitability.
-
Article 17 mins
3 Strategies to Improve Career Outcomes for Older Employees
With life expectancies and retirement ages on the rise, organizations can capitalize on the value that older employees offer and support them by fostering a workplace where both the business and its people thrive.
-
Article 8 mins
Wildfire Risk Fuels New Challenges for U.S. Communities
As climate change compounds wildfire risk, organizations play a critical role in protecting their workforce before and after an event.
-
Article 10 mins
5 Ways to Address Health and Wellbeing in the Transportation Industry
The transportation and logistics industry faces unique challenges which can negatively impact employees' health. A cultural shift to more tailored wellbeing strategies can improve health outcomes and boost company performance.
-
Article 8 mins
Workforce Shortages as a Future Risk
As workforce and skills shortages emerge as a significant future risk, companies seek winning talent and tech solutions.
-
Article 6 mins
A Streamlined Retirement Solution for Spin-Off Organizations
Pooled employer plans (PEPs) can offer a streamlined solution to the retirement planning challenges inherent in spin-off and M&A events.
-
Article 20 mins
5 Ways HR Can Partner with Finance to Drive Growth
The role of HR professionals is becoming more strategic, which requires collaboration with other areas of an organization to help drive growth. Given that people and benefit costs are a large portion of business expenses, partnering with finance is a natural step forward.
-
Article 5 mins
Remote Work and Potential Employment Practices Liability Perils
Aon analyzes employee perception about return to office policies following the COVID-19 pandemic, as well as recent actions one organization took for alleged lack of remote employee productivity.
-
Article 11 mins
The Silver Lining on M&A Deal Clouds: M&A Insurance Insights from 2023
Despite subdued global M&A in 2023, positive trends have been emerging in the M&A insurance market to help clients improve their deal-making and ‘value-protection on investment’.
-
Article 7 mins
Specialist Insights: A Deep Dive into Effective Crisis Management and Evacuation Protocols
Graeme Hudson and Ghonche Alavi from Crisis24 discuss Crisis24’s approach to Political Evacuation and Threat Management with Cara LaTorre from the Financial Services Group at Aon.
-
Article 8 mins
3 Human Capital Recommendations for Construction Contractors Entering Asia
European construction contractors are looking with increasing interest at Asia, but to expand successfully into the region, they need to overcome key workforce and market challenges.
-
Article 8 mins
How Cyber and Data Resilience Support Growth in Life Sciences
As digitalization presents new risks and opportunities for life sciences organizations, implementing cyber and data resilience ensures that innovation doesn’t result in business interruption.
-
Article 7 mins
How Insurance Companies can Sustain Profitable Growth Through the Market Cycle
For insurers, making decisions on where and how to deploy capital becomes more difficult during times of volatility.
-
Article 6 mins
Key Considerations When Exploring Captives for Voluntary Employee Benefits
Employers in the U.S. should understand the unique risks associated with voluntary benefit captives when considering alternative insurance arrangements for their voluntary benefit plans.
-
Article 7 mins
Improve Safety and Loss Control to Lower Workers Compensation Costs
Workers compensation is an area of risk management that could benefit from a more holistic approach. A safety program that incorporates wellbeing and uses data in a meaningful way can contribute greatly to lowering costs.
-
Article 8 mins
How Aon Partnered with Minnesota Firefighters to Create Crucial Health Benefits
Firefighters face a unique set of risks and long-term health consequences from their jobs. Aon worked with Minnesota firefighters to create a benefit program to address three primary health issues.
-
Article 8 mins
4 Steps to Help Mitigate the Cost of Open Workers Compensation Claims
Open legacy workers compensation claims place rising financial burdens on employers, who are faced with closing out aged claim inventory and improving their balance sheets in the process.
-
Article 5 mins
Climate Change: Evolving Property Risk to Resilience
Organizations must consider the impact of climate change on property, which will vary now and years into the future. Therefore, a thoughtful approach can enhance risk mitigation and resilience strategies.
-
Article 9 mins
Middle Market Risk, Regulatory and Compliance Strategies
Helping midsize organizations strike the right balance between risk and compliance with a comprehensive regulatory and compliance framework.
-
Article 6 mins
Empowering Employees to Make Better Health Plan Decisions
As U.S. employers balance costs with providing employees more value from their benefits, creating an annual healthcare enrollment process that includes more choice and guidance can accomplish both goals.
-
Article 10 mins
Q2 2024: Global Insurance Market Overview
With many insurers reporting healthy profits in 2023, and in response to notable improvements in the reinsurance market, the insurance market in Q2 2024 remained growth-oriented.
-
Alert 3 mins
Better Decisions Brief: Perspectives on the CrowdStrike Outage
On July 19, 2024, the CrowdStrike outage became one of the largest IT events in history, impacting businesses and customers around the world. Leaders now have an opportunity to reexamine technology dependencies and business continuity plans to mitigate similar risks in future.
-
Article 7 mins
How Insurers are Integrating Climate Change into their Investment Decisions
Insurers are some of the world’s largest institutional investors. Recognising their crucial role in driving the global climate transition, they should identify and analyse climate-related risks and opportunities to improve long-term risk-adjusted returns.
-
Article 8 mins
Lessons Learned from the CrowdStrike Outage: 5 Strategies to Build Cyber Resilience
The global CrowdStrike IT outage demonstrated that even non-malicious cyber incidents may have serious repercussions. Events like these serve as a wake-up call for businesses to review their cyber resilience and be prepared for more significant incidents in the future.
-
Article 7 mins
Companies Need a Global Benefits Identity in an Era of Cost Containment
More global benefits professionals are aligning benefit strategy to an employer’s identity and values.
-
Alert 10 mins
Responding to the CrowdStrike Outage: Implications for Cyber (Re)Insurance
CrowdStrike, a global cybersecurity firm, released an update for its Falcon sensor, which caused system crashes on Microsoft Windows systems globally.
-
Article 8 mins
Responding to Cyber Attacks: How Directors and Officers and Cyber Policies Differ
Cyber incidents continue to grow in frequency and severity, especially as new technology emerges. While D&O and cyber liability policies offer distinct coverage differences, terms need to be carefully structured to avoid potential gaps.
-
Article 6 mins
Insurance and the Metaverse: Safeguarding Virtual Assets
Insurers are venturing into the thriving digital landscape of the Metaverse, covering virtual assets, safeguarding intellectual property, and protecting the wellbeing of users and avatars. With this evolution, comes new challenges and the unique opportunity to shape the future of insurance.
-
Article 10 mins
Build Resilience for an Extremely Active Atlantic Hurricane Season
Record-warm Atlantic Ocean temperatures and a shift to La Niña conditions have led forecasters to predict an extremely active Atlantic hurricane season in 2024. Learn how to build business resilience to mitigate risk for hurricane-prone properties.
-
Alert 7 mins
Workforce Implications of U.S. Supreme Court Ruling on ‘Chevron Deference’
The U.S. Supreme Court has changed the way laws are interpreted in the development of regulations. This change has the potential for far-reaching consequences for both regulatory agencies and employers.
-
Article 18 mins
The Optimal Outsourced Chief Investment Officer
For institutional investors, engaging an outsourced chief investment officer, or OCIO, is one of the most critical decisions an organization can make. Choosing the right partner can lead to achieving the desired results or unexpected consequences.
-
Article 4 mins
Credit Solutions Market Overview
Overview of the current trade credit insurance market and outlook on trend developments.
-
Article 11 mins
Building a Future-Ready Workforce for the Professional Services Industry
The need to attract and retain high-quality talent in an environment of intense competition is at the forefront of professional services leaders’ minds.
-
Article 11 mins
Enhancing Cyber Resilience in the Renewables Sector
Renewable energy is critical to meet net-zero targets, but as the industry grows, so do cyber attack surfaces. Learn how to prepare for emerging threats and support long-term ambitions.
-
Article 7 mins
Connected Perspectives: Better Decisions on Interconnected Risks for FAB Organizations
As the scale and speed of interconnected risks escalate, innovative risk management strategies help FAB businesses build the resilience and agility needed to thrive.
-
Article 10 mins
Driving a Future-Proof, Skills Based Approach for the Renewable Energy Sector
The renewable energy sector is undergoing a sweeping transformation, as it plays a pivotal role in the challenge to achieve global net-zero goals. Attracting, upskilling and retaining talent is critical for sustainability.
-
Article 7 mins
How to Navigate Evolving Construction Contractor Risks in EMEA
Contractors in EMEA face an array of risks they must mitigate or transfer while managing the complexities inherent in major construction projects.
-
Article 12 mins
8 Focus Areas for the Renewable Energy Sector
As more companies seek to reduce their carbon footprint, the renewable energy sector continues to grow, presenting both opportunities and red flags for organizations with renewable energy growth plans.
-
Article 6 mins
Reshoring: Managing Risks and Building Resilience Closer to Home
Proactive risk management and data-driven reshoring strategies can empower risk managers in logistics companies to navigate supply chain complexities with confidence.
-
Article 5 mins
Captive Insurance: Uptick in Use Reflects Market Realities
As more companies become comfortable using captives and understanding the value they add, captives are likely to become further embedded into corporate risk strategies, regardless of market conditions.
-
Article 6 mins
Building Strategies for Sustainable Growth as a Mid-Sized Organization
Helping midsize organizations leverage key partnerships to address challenges around talent, market, regulatory compliance, and leveraging capital.
-
Article 12 mins
Helping Employers Navigate the Rise in High-Cost Medical Claims
A rapid rise in medical plan costs is being driven in part by high-cost claimants — a high-risk group that disproportionately accounts for a large amount of healthcare costs. Here are strategies for addressing this issue.
-
Article 9 mins
Four Steps to Implementing an Effective Online Benefits Platform
Online benefits platforms are a key component of the overall employee value proposition. As employers maximize the ROI of their people spend, here are four tips which may assist with implementing a successful online benefits platform.
-
Article 8 mins
Pay Transparency Can Lead to Better Equity Across Benefits
Efforts to bring more transparency to pay practices shine a light on benefits equity — and it’s not only about wages and salary.
-
Article 3 mins
Building Resilience Against the Constant Cyber Threat
The rapid pace of digitalisation means that organisations in the UK are constantly struggling with the ever-present threat of cyber attacks.
-
Article 2 mins
Creating a Fair and Equitable Workforce for Everyone
Equity has an important part to play in a balanced strategy to improve the attraction and retention of key employees.
-
Article 2 mins
How to Balance the Conflicting Forces of Efficiency, Performance and Wellbeing
How are business leaders adapting to a generational change in how work gets done?
-
Article 2 mins
Introduction: Clarity and Confidence to Make Better Decisions
Lori Goltermann, CEO of Regions and Enterprise Clients, Aon examines the main issues discussed at the event.
-
Article 2 mins
Making Better Decisions – A Treasurer’s Perspective
Our panel discussion looked at the issues facing corporate treasurers and how they have become more complex and interconnected.
-
Article 3 mins
Seizing the Opportunity: Building a Comprehensive Approach to Risk Transfer
Businesses are still in search of competition, alternatives and innovation in their insurance programmes.
-
Article 2 mins
Tapping New Markets to Unlock Deal Value
Companies and financial sponsors are constantly seeking innovative and capital-efficient ways to facilitate M&A deals.
-
Article 2 mins
The Age of Rising Resilience – An Economic Outlook
Professor Trevor Williams analyses the latest indicators and what they mean for the UK — and global — economy.
-
Article 2 mins
The Aon Difference
How Aon is moving further, faster to bring new, innovative solutions that address companies’ risk and people challenges.
-
Article 5 mins
The Rise of the Skills-Based Organisation
Today's employers need to continually learn and adapt to emerging technologies and skills if they are to thrive in the talent landscape.
-
Article 3 mins
The Year of the Vote: How Geopolitical Volatility Will Impact Businesses
Companies that operate around the world need to have a global appreciation of the heightening geopolitical risk.
-
Article 6 mins
Three Ways Collective Retirement Plans Support HR Priorities
Collective retirement plans are growing in popularity and improving employees’ financial wellbeing in the process. Other advantages that haven’t been as widely explored include how these retirement structures allow HR to shift its focus to strategy.
-
Article 8 mins
How North American Construction Contractors Can Mitigate Emerging Risks
Getting ahead of risk is vital for North American construction contractors, as they aim to manage evolving issues, while delivering job safety, solving workforce shortages and containing project costs.
-
Alert 6 mins
U.S. Department of Labor Restores and Extends Overtime Protections
The Department of Labor released a final rule increasing overtime protections for the standard salary level threshold for the “white collar" exemptions and the threshold for employees classified as Highly Compensated Employees. Employers need to prepare for these significant changes.
-
Article 10 mins
How Insurers Can Capture Climate Opportunities
Climate change adaptation and the transition to net zero present huge premium growth opportunities for insurers. The key question is how to get started.
-
Article 7 mins
How to Navigate the EMEA Cyber Risk Insurance Market
As the cyber insurance landscape continues to evolve in EMEA, companies need actionable insights and solutions to strengthen their cyber risk strategies.
-
Article 9 mins
Insurers Seek Risk Transfer Solutions to Offset Higher Retentions and Resume Growth
The challenges of 2023 eroded the buffers that many insurers had previously enjoyed, bringing an increased focus on capital management and a variety of capital sources according to Aon’s capital poll.
-
Report 18 mins
Evolving Technologies Are Driving Firms to Harness Opportunities and Defend Against Threats
While advancements in AI, cyber and data technology are helping companies operating in an increasingly digital world gain a significant competitive edge, they also introduce new and evolving risks.
-
Article 6 mins
How to Make the Most of Voluntary Benefit Plans in the U.S.
As healthcare costs rise, voluntary benefits are a critical component of engaging employees, while also helping to manage direct and indirect medical expenses. Here are three strategies for employers to make the most of their voluntary benefits.
-
Article 8 mins
NIS2 Compliance Readiness for Organizations across the European Union
The expansive scope, stringent sanctions and pivotal role of management related to the new NIS2 Directive provide a strong foundation to protect against evolving cyber risks.
-
Article 8 mins
London Insurance Market: Unveiling Demands for New Skills in 2024
The London insurance market seeks a generation of game-changers who can navigate uncertainties and drive innovation to ensure the industry’s future success in a digitalised world.
-
Article 3 mins
Better Decisions in Trade, Technology, Weather and Workforce
From global supply chain risks to climate insecurity, organizations face challenges and complexities on a scale rarely seen before.
-
Article 15 mins
How Artificial Intelligence is Transforming Human Resources and the Workforce
Artificial intelligence is having a measurable impact across all aspects of HR — from talent management to compensation, health and benefits, and retirement planning. To effectively harness the technology, HR leaders must ensure both their own teams and the wider workforce are prepared.
-
Article 3 mins
Risk Capital and Human Capital Perspectives
Risk Capital CEO Andy Marcell and Human Capital CEO Lambros Lambrou discuss how innovations in Risk Capital and Human Capital can help organizations boost resilience and navigate volatility.
-
Report 15 mins
Wide-Ranging Trade Issues Confront Global Businesses on Multiple Fronts
Global business leaders highlight risks linked to trade as some of their top concerns — both physical and financial. While the topic is complex and broad, there are opportunities that business leaders can pursue to stay ahead of emerging trade dynamics.
-
Report 16 mins
Climate Analytics Unlock Capital to Protect People and Property
Extreme weather and a changing climate are impacting many of the risks businesses face today. To address future exposures, organizations will need advanced climate and natural catastrophe models and expertise that can assess chronic and acute risks.
-
Report 14 mins
A Workforce in Transition Prepares to Meet a Host of Challenges
Engaging a changing workforce requires data and innovation. Workers increasingly expect more than just a paycheck. In response, organizations are balancing costs with the ability to provide a compelling employee experience.
-
Case Study 3 mins
How Aon Helped M&G Wealth Develop New Advisor Skills
Aon partnered with UK financial advice firm M&G Wealth to help the firm better understand the make-up of a highly successful advisor of the future, including the skills needed given shifts in societal needs, technology and regulation.
-
Article 8 mins
Energy Transition Investments: How Advanced Analytics Can Empower Organizations
Advanced analytics can empower organizations with deeper insights into the risks and opportunities surrounding renewables, while also supporting energy transition investment.
-
Article 17 mins
Q1 2024: Global Insurance Market Overview
Positive performance in 2023 fueled insurer growth ambitions but underwriting remained disciplined in the first quarter of 2024.
-
Article 12 mins
How Life Sciences Build Robust Talent Pipelines in the Age of Digitalization
While digitalization is delivering transformational change to R&D across the sector, it is also rapidly reshaping recruitment and retention strategies.
-
Alert 6 mins
U.S. Federal Trade Commission Bans Employee Noncompete Agreements; Here’s What Employers Should Know
The FTC has announced a rule that bans noncompetes and clauses that have a similar effect. While the rule will face legal challenges, employers should take steps now to prepare for an environment where they cannot use noncompete agreements.
-
Article 7 mins
Managing Construction Risks: 7 Risk Advisory Steps
Risk advisory services can help construction stakeholders navigate uncertainties, optimize performance and drive growth in their projects.
-
Article 9 mins
Floating Offshore Wind Unlocks New Opportunities and Challenges
While there are similarities in the risk profile of floating offshore wind and bottom-fixed offshore wind, challenges like unproven technology and tow-to-port strategies for maintenance require a collaborative approach between owners/developers and their insurance partners.
-
Article 4 mins
Parametrics Unlock Solutions For Future Risks
Macrotrends are transforming our world and creating emerging property-casualty exposures, which will have profound implications for the insurance industry.
-
Article 7 mins
U.S. Cyber Insurance: Market Trends and Opportunities
Understanding market trends and future projections in an evolving cyber insurance market is paramount to strengthening risk mitigation and transfer strategies.
-
Article 5 mins
How Climate Modeling Can Mitigate Risks and Improve Resilience in the Construction Industry
In an era of escalating climate-related challenges, the construction industry is turning to advanced climate modeling to fortify its risk management strategies.
-
Article 14 mins
How Technology Will Transform Employee Benefits in the Next Five Years
Advances in technology will not only transform healthcare and treatment outcomes — benefit offerings, access to care, diagnosis, treatment and affordability challenges will also be radically changed. Here is what to expect as these efforts take shape globally.
-
Article 10 mins
Key Trends in U.S. Benefits for 2024 and Beyond
As healthcare costs continue to rise, employers are struggling to balance cost control with attracting and retaining talent. The results of Aon's 2024 U.S. Health Survey point to key strategies organizations are using to help.
-
Article 11 mins
Capturing Carbon on the Critical Pathway to Net Zero
As the world races to reduce climate risks and limit CO<sub>2</sub> emissions, the demand for scalable and cost-effective decarbonization technologies is increasing. Carbon capture projects form an important part of the low carbon energy transition, bringing both challenges and opportunities.
-
Article 7 mins
Protecting North American Contractors from Extreme Heat Risks with Parametric
Growing extreme heat conditions have escalated risks, delays and costs for the construction industry in North America. Parametric insurance can help protect against such risks, offering contractors and building owners agility, efficiency and flexibility.
-
Article 9 mins
How Insurance Can Help Hedge Potential Exposures Under the New Unified Patent Court System
The launch of the Unified Patent Court allows for a new patent filing process across Europe using a centralized system. While this brings significant financial and operational benefits, navigating these changes will demand a robust litigation risk management strategy.
-
Article 8 mins
Parametric Can Help Mitigate Extreme Heat Risks for Contractors in EMEA
Construction projects in EMEA are often impacted by extreme heat, leading to project delays and increased costs. Many heat exposures are excluded by traditional markets, however, parametric is a flexible solution that can help mitigate these risks.
-
Article 12 mins
Understanding and Preparing for the Rise in Pay Transparency
New regulations in the U.S. and Europe will require companies to be more transparent about their pay practices. Combined with willingness among workers to talk about salary, the era of pay transparency is here.
-
Article 11 mins
Advancing Women’s Health and Equity Through Benefits and Support
As companies tailor their health and benefits to meet the needs of their employees, vital areas for support include family building and menopause.
-
Article 7 mins
Unlocking Capacity and Capital in a Challenging Construction Risk Market
Complex market dynamics in the construction industry are pushing organizations to proactively explore alternative risk transfer solutions, including parametric insurance and captives.
-
Article 11 mins
Securing Human Capital in Natural Resources
As new job roles and technologies emerge in the natural resources industry, employee expectations are also shifting. Leaders must rise to the challenge of securing talent to meet the world’s future energy needs.
-
Article 5 mins
Navigating Cybersecurity Risk Under New U.S. Rules
Rulemaking from the Securities and Exchange Commission (SEC) highlights the importance of company transparency with investors and regulators around risk management and the impact of cyber events.
-
Article 13 mins
Building Growth From Uncertainty in Financial Institutions
Five ways financial institutions can balance investment with prudence in an uncertain economic climate.
-
Article 12 mins
Q4 2023: Global Insurance Market Overview
An increasingly interconnected and complex risk landscape continues to shape risk strategies and market responses.
-
Article 13 mins
Top Risk Trends to Watch in 2024
To be successful, business leaders must keep pace with the key trends that will impact the risk and insurance landscape in 2024.
-
Article 9 mins
How to Navigate Contractor Shortages in the Energy and Power Industries
Taking a new approach to talent management and planning for worker shortages can help businesses in the energy and power industries build greater operational resilience.
-
Article 8 mins
Driving Inclusion and Diversity with Employee Benefits
As organizations build diversity, equity, inclusion and belonging in the workplace, they must also ensure benefit plans are designed and customized to meet the needs of a diverse workforce.
-
Article 11 mins
How Investors are Making Better Decisions Amid a Changing Climate
For investors, climate change means navigating uncertainties and understanding a wide range of potential outcomes.
-
Article 8 mins
Understanding Freeze Risk in a Changing Climate
Extreme cold and freeze were responsible for $15 billion worth of structural damage in recent years, as well as business interruption and supply chain impacts. We explore the threat chronic hazards pose and consider the influence of climate change on business.
-
Article 7 mins
4 Steps to Help Take Advantage of a Buyer-Friendly Directors' & Officers' Market
The global D&O market remains soft, creating a favorable environment for buyers. With abundant capacity and increased competition, capitalizing on conditions now is critical as rates are showing signs of moderating.
-
Article 17 mins
Five Big Human Resources Trends to Watch in 2024
It's never been more important for HR leaders to help shape and support the execution of business strategies. However, to be successful in today’s volatile world, HR teams must stand ready to understand and harness five fast moving trends.
-
Article 9 mins
Managing Reputational Risks in Global Supply Chains
Supply chain disruptions can have serious reputational repercussions, causing plummeting shareholder value and diminished stakeholder trust. The potential fallout underscores the need for management strategies that collectively address these risks.
-
Article 13 mins
Creating Operational Resilience Amid Growing Risks in the Food, Agribusiness and Beverage Industry
To feed a growing global population, FAB organizations must build operational resilience to overcome supply chain, cyber, geopolitical and climate risks.
-