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May 18, 2023
Reinsurance
After a difficult Q4 2022, the catastrophe bond market has reassumed its growth trajectory during the first quarter of 2023. Transaction sizes have increased markedly from the second half of 2022, with total deal sizes YTD 67% greater on average than those issued during H2 2022. Further, whilst pricing remains elevated from levels achieved in 2021, it has tightened during the first three months of 2023 from peak levels seen at year-end 2022, a development welcomed by insurers and reinsurers, alike, particularly at a time when pricing in the reinsurance and retrocession markets remain heightened relative to the prior decade.
Apr 13, 2023
Impact Forecasting
Preliminary estimate of global natural disaster losses for the first quarter of 2023 was well above the
average when compared to the 21st Century baseline ($53 billion) and significantly higher than the
median ($38 billion), which is not skewed by the record year of 2011. As of mid-April, total economic
losses in Q1 of 2023 are estimated to reach at least $63 billion.
Apr 04, 2023
Reinsurance Market Dynamics
The imbalance in property catastrophe reinsurance demand and supply at January 1 showed signs of easing at the April 1 renewal, where we were able to place property catastrophe limits, albeit at a price and with higher retentions. With mid-year renewal negotiations now underway, the demand-supply balance is delicately poised, yet we are optimistic that the market is now on a more stable footing following a turbulent 1/1.
Mar 06, 2023
Reinsurance
Reflecting on 2022, the property catastrophe bond (cat bond) market supported new and repeat insurance, reinsurance and government sponsors, and maintained an orderly manner despite the macroeconomic headwinds facing the market, Hurricane Ian and the conflict in Ukraine.
Jan 25, 2023
Impact Forecasting
As climate change impacts the frequency and severity of costly weather events across the globe, the impact is tangible, immediate and measurable. With this challenge comes opportunity. Aon’s 2023 Weather, Climate and Catastrophe Insight better informs readers to identify natural disaster trends and make better decisions to manage volatility and enhance global resilience. This year, we investigate how to de-risk climate innovation and unlock opportunity to build a resilient future for the communities in which we live and work.
Jan 18, 2023
Reinsurance Market Dynamics
The January 2023 renewal marks a turning point for the reinsurance market, signaling a new reality for buyers. It was the most challenging January 1 renewal in a generation as the reinsurance market underwent a fundamental shift in pricing and risk appetite, especially for property catastrophe risk.
Oct 18, 2022
Impact Forecasting
Heatwaves and drought conditions gripped large parts of Europe and China as they experienced extended summers. The last month of the quarter, however, was characterized by intense tropical cyclones with Hurricane Ian and Fiona in the Atlantic Basin and Super Typoon Noru and Nanmadol in Western Pacific. Preliminary year-to-date economic losses were $227 billion (including an initial view of Hurricane Ian) with insurers expected to cover $99 billion.
Oct 18, 2022
Reinsurance
Our latest Inflationary Trends Report reveals;
Oct 03, 2022
Reinsurance
After two decades of measuring and reporting on the health of the homeowners line, it has never hit our 10 percent ROE benchmark hurdle (based on a prospective actuarial basis). The homeowners line continues to face challenging headwinds that require unique strategies to attain a reasonable ROE. In our latest Homeowners Return On Equity Outlook we review some of the key headwinds and tailwinds that insurers will need to account for in of the upcoming year.
Sep 29, 2022
Evolving Criteria
These are changing times for the (re)insurance sector, a point that is increasingly reflected in the busy agenda of ratings agencies, insurance supervisors, regulators and policy makers. Macro-economic volatility, climate change, emerging risks and market uncertainties are all on their radars, with potential implications for (re)insurer capital and credit ratings. The annual Evolving Criteria report highlights the most important developments to help insurers stay informed on the pressing changes to the credit rating and regulatory environment that may impact their rating position and goals.
Sep 08, 2022
Reinsurance
The reinsurance market is facing a unique combination of market uncertainties. With a majority of property reinsurance programs renewing on January 1, we explore the challenges as some reinsurers reduce their appetite for catastrophe risk and reveal how to achieve portfolio differentiation in an evolving market.
Sep 05, 2022
Insurance-Linked Securities
Aon’s annual report aims to offer an authoritative, insightful review and analysis of the ILS asset class and related developments in the market. Its findings can assist re/insurers, government organizations, and corporations in their decisions as to whether to incorporate or augment insurance-linked securities in their risk transfer programs.
Sep 01, 2022
Reinsurance
Now in it's 17th year, the Insurance Risk Study determines credible global insurance volatility benchmarks for use in underwriting risk modeling. It aims to help insurers understand volatility within a given line of business and how those lines of business interact with each other.
Aug 31, 2022
Cyber
The seventh edition of Aon’s U.S. Cyber Market Update covers the Cyber insurance industry’s 2021 performance based on data from the NAIC statutory filing supplement. The report provides performance benchmarking insights and perspective on the industry experience for insurers that offer Cyber insurance.
Aug 18, 2022
Reinsurance
As inflation remains at its highest level in decades – Aon’s Inflationary Trends Report reveals key monthly insights driving inflation and explores how this impacts insurers’ pricing, claims management and reinsurance needs and the options to navigate this fluctuating landscape.
Jul 19, 2022
Impact Forecasting
To better understand emerging trends, navigate volatility and enhance resilience measures, Aon releases the 1H 2022 edition of its Quarterly Catastrophe Recap report to evaluate the impact of the global natural disasters from January – June 2022. Our mid-year analysis aims to give readers a preliminary view of how weather, climate, and other natural catastrophe events have shaped the first half of the year from a financial and humanitarian perspective. Such information is key to deploy better decision making as the calendar heads towards key renewal seasons for the re/insurance industry.
Jun 29, 2022
Reinsurance
Reinsurance buyers faced a near-perfect storm in June and July, as capacity constraints collided with rising demand for reinsurance protection. Despite these challenges, the majority of insurers were ultimately able to satisfy their reinsurance needs. The Reinsurance Market Dynamics report covers the role of inflation and investment market volatility on supply and demand patterns during June and July renewals.
Jun 28, 2022
Market Analysis
As the reinsurance industry contends with new forms of volatility, Aon’s 2021 Catastrophe Risk Tolerance Study examines the catastrophe risk disclosures of 81 publicly traded global (re)insurers to provide clients with benchmarking insight for better informed reinsurance program and risk tolerance strategies.
Jun 17, 2022
Reinsurance
As inflation remains at its highest level in decades – Aon’s Inflationary Trends Report reveals key monthly insights driving inflation and explores how this impacts insurers’ pricing, claims management and reinsurance needs and the options to navigate this fluctuating landscape.
May 16, 2022
Insurance-Linked Securities
Aon’s latest report aims to offer an authoritative, insightful review and analysis of the ILS asset class and related developments in the market. Its findings can assist re/insurers, government organizations, and corporations in their decisions as to whether to incorporate or augment insurance-linked securities in their risk transfer programs.
May 13, 2022
Reinsurance
As inflation remains at its highest level in decades – Aon’s monthly Inflationary Trends Report reveals the key monthly insights and explores how this impacts insurers’ pricing, claims management and reinsurance needs and the options to navigate this fluctuating landscape.
Apr 28, 2022
Reinsurance Market Dynamics
Beyond the broader measures affecting the macro dynamics of most markets, Aon’s Reinsurance Market Outlook report covers several factors impacting both supply and demand including Standard & Poor’s upcoming model changes, real and social inflation, new risks emerging from PFAS and other chemicals, secondary peril considerations and climate change.
Apr 12, 2022
Impact Forecasting
The report reveals that the period under review saw significant natural hazard activity occurring in Western and Central Europe (Windstorms Dudley/Ylenia, Eunice/Zeynep, and Franklin/Antonia), Australia (East Coast Floods), Japan (March 16 Earthquake), and the United States (Severe Convective Storms). The preliminary Q1 overall economic loss was $32 billion. Public and private insurers covered $14 billion of this total.
Feb 15, 2022
Insurance-Linked Securities
The cat bond market demonstrated strength on strength and finished the year strongly to post a second consecutive record-breaking year of issuance volume at $12.50 billion, exceeding the previous record of $11 billion set in 2020. The market was driven largely by a combination of new and repeat sponsors, increases in deal volumes, record maturities and spread compression. Over $10.15 billion in maturities combined with healthy ILS Manager cash positions led to an attractive primary market and record issuance volume.
Jan 25, 2022
Impact Forecasting
Aon's Impact Forecasting team's latest edition of its Global Catastrophe Recap report, which evaluates the impact of the natural disaster events that occurred worldwide during December to help identify trends, manage volatility, and enhance resilience.
Jan 25, 2022
Impact Forecasting
As the world wakes up to the effects of a changing climate, organizations have to be better informed if they are to make the right decisions for their future. The 2021 Weather, Climate and Catastrophe Insight investigates how best to build for the long-term while tackling the immediate challenges of a volatile world.
Jan 12, 2022
Market Analysis
Aon's Market Security and Analysis team has created this report to provide on update on collateral reform in the U.S. and includes an update on the “Covered Agreement” which will dictate collateral requirements (among other things) between the U.S. and EU.
Dec 15, 2021
Reinsurance
On December 6th, S&P issued the first draft material update to their Risk-Based Capital Adequacy methodology in more than 10 years. It is comprehensive and covers all aspects of the original criteria. S&P expects that up to 10% of ratings may move, with likely more upgrades than downgrades. The proposals will impact the underlying Capital and Earnings assessment, with possible changes for up to 35% of insurers.
Dec 14, 2021
Impact Forecasting
Aon's Impact Forecasting team's latest edition of its Global Catastrophe Recap report, which evaluates the impact of the natural disaster events that occurred worldwide during November to help identify trends, manage volatility, and enhance resilience.
Dec 07, 2021
Cyber
Welcome to Cyber Insights for Insurers, from the Cyber Practice Group for Aon’s Reinsurance Solutions business. As always, we aim to equip you with relevant trends and analysis to enhance your cyber insurance underwriting, portfolio management and claims handling, plus prepare you for changes in privacy law, the regulatory environment and the threat environment.
Nov 18, 2021
Reinsurance
The first market insights report produced as a collaboration between Aon and Lloyd’s Market Association (LMA), with the aim of providing LMA members with an overview of how capital and business strategy are connected within the Lloyd’s market.
Nov 10, 2021
Impact Forecasting
Aon's Impact Forecasting team's latest edition of its Global Catastrophe Recap report, which evaluates the impact of the natural disaster events that occurred worldwide during October to help identify trends, manage volatility, and enhance resilience.
Nov 02, 2021
Reinsurance Market Dynamics
2020 marked the start of a different trading environment for the industry and the value of risk transfer through reinsurance remains strong as the primary market focuses on growth, digital distribution, capital optimization strategies and a customized, data driven approach to understanding risk.
Oct 28, 2021
Impact Forecasting
As the world contemplates a changing climate, we must examine the impact we are already experiencing today and the steps to prepare right now. The report delves into three recent examples of key perils that already show the fingerprints of climate change.
Oct 14, 2021
Reinsurance
Wildfire risk in the United States is an important peril for the insurance industry and beyond. The physical and non-physical risks posed by the climate change, and the location of where we build new homes compels homeowners, policymakers and insurers to rethink how wildfire is managed.
Sep 30, 2021
Insurance-Linked Securities
Aon’s latest report aims to offer an authoritative, insightful review and analysis of the ILS asset class and related developments in the market. Its findings can assist re/insurers, government organizations, and corporations in their decisions as to whether to incorporate or augment insurance-linked securities in their risk transfer programs.
Sep 10, 2021
Impact Forecasting
Aon's Impact Forecasting team's latest edition of its Global Catastrophe Recap report, which evaluates the impact of the natureal disaster events that occurred worldwide during August to help identify trends, manage volatility, and enhance resilience.
Aug 31, 2021
Cyber
This edition of the Cyber Insights for Insurers examines recent high-profile ransonware incidents and how governments around the world are taking action. The Q2 Review also looks at the most recent cloud attack trends and their resulting cloud provider down time.
Aug 11, 2021
Impact Forecasting
Aon's Impact Forecasting team's latest edition of its Global Catastrophe Recap report, which evaluates the impact of the natureal disaster events that occurred worldwide during August to help identify trends, manage volatility, and enhance resilience.
Jul 29, 2021
Impact Forecasting
Aon's Impact Forecasting team's U.S. Freeze & Winter Weather Event report, which evaluates the impact of extreme cold weather that occurred during February 2021 to help identify trends, manage volatility and enhance resilience.
Jul 21, 2021
Impact Forecasting
Aon's Impact Forecasting team's latest edition of its Global Catastrophe Recap report, which evaluates the impact of the natural disaster events that occurred worldwide during the first half of 2021 to help identify trends, manage volatility, and enhance resilience.
Jul 20, 2021
Reinsurance Market Dynamics
Reinsurers reported solid earnings in Q1 2021, with Aon’s Reinsurance Aggregate ending the period with an estimated combined ratio at 96.6%, benefiting from previous rate increases. Global reinsurance capital remained flat compared to Q4 2020 at $650 bn. Alternative capital filled the $2 bn decline in traditional capital to end the quarter at $96 bn and $554 bn respectively.
Jul 13, 2021
Impact Forecasting
Aon's Impact Forecasting team's latest edition of its Global Catastrophe Recap report, which evaluates the impact of the natural disaster events that occurred worldwide during June to help identify trends, manage volatility, and enhance resilience.
Jul 01, 2021
Market Analysis
Aon's Catastrophe Risk Tolerance Study examines the catastrophe risk public disclosures of 88 insurance groups in four different sectors. The findings include the actual risk disclosures filed by each company and examines the variance of catastrophe risk exposures and tolerances in recent years.
Jun 10, 2021
Impact Forecasting
Aon's Impact Forecasting team's latest edition of its Global Catastrophe Recap report, which evaluates the impact of the natural disaster events that occurred worldwide during May to help identify trends, manage volatility, and enhance resilience
May 11, 2021
Impact Forecasting
Aon's Impact Forecasting team's latest edition of its Global Catastrophe Recap report, which evaluates the impact of the natural disaster events that occurred worldwide during April to help identify trends, manage volatility, and enhance resilience
Apr 13, 2021
Market Analysis
Aon’s latest report summarizes the financial performance of 23 of the world’s leading reinsurers for the year to December 31, 2019. The report establishes a useful ‘baseline’ from which to assess the potential impacts of COVID-19 on the reinsurance sector.
Apr 08, 2021
Impact Forecasting
Aon's Impact Forecasting team's latest edition of its Global Catastrophe Recap report, which evaluates the impact of the natural disaster events that occurred worldwide during February to help identify trends, manage volatility, and ehance resilience
Mar 11, 2021
Impact Forecasting
Aon's Impact Forecasting team's latest edition of its Global Catastrophe Recap report, which evaluates the impact of the natural disaster events that occurred worldwide during February to help identify trends, manage volatility, and enhance resilience.
Feb 09, 2021
Impact Forecasting
Aon's Impact Forecasting team's latest edition of its Global Catastrophe Recap report, which evaluates the impact of the natural disaster events that occurred worldwide during January 2021 to help identify trends, manage volatility and enhance resilience
Jan 25, 2021
Impact Forecasting
As climate change further influences the behavior of weather events, more people move into known hazard risk areas, and global wealth further accelerates, the humanitarian and financial impact from natural disasters is expected to grow. This will require new climate resilience and mitigation strategies to navigate new forms of volatility, rethink access to capital, and reduce the protection gap as risks are amplified in an increasingly interconnected world.
Jan 24, 2021
Impact Forecasting
Aon's Impact Forecasting team's latest edition of its Global Catastrophe Recap report, which evaluates the impact of the natural disaster events that occurred worldwide during January 2021 to help identify trends, manage volatility, and enhance resilience.
Jan 06, 2021
Reinsurance Market Dynamics
Despite record-setting hurricane landfall in the U.S. and uncertainty about the impact of COVID-19 in some lines, the reinsurance market operated in an orderly and efficient manner for January renewals. Virtual market trading did not impact the industry’s ability to efficiently trade through the major reinsurance renewal date of the year. New capital raises and primary market pricing trends mitigated further market dislocation as renewals evolved through January 1 despite recent years earnings results, U.S. catastrophe loss activity and interest rate challenges for reinsurers.
Dec 10, 2020
Impact Forecasting
Aon's Impact Forecasting team's latest edition of its monthly Global Catastrophe Recap report, which evaluates the impact of the natural disaster events that occurred worldwide during November 2020 to help identify trends, manage volatility, and enhance resilience
Nov 17, 2020
Global Insurance Market Opportunities
Reinsurance is an inherently volatile industry, and reinsurers must strike a balance between the needs of their cedants and the needs of their shareholders. Developing a strategy and portfolio that delivers the right risk reward trade-off is key.
Nov 10, 2020
Impact Forecasting
Aon's Impact Forecasting team's latest edition of its monthly Global Catastrophe Recap report, which evaluates the impact of the natural disaster events that occurred worldwide during October 2020 to help identify trends, manage volatility, and enhance resilience.
Nov 09, 2020
Global Insurance Market Opportunities
The Chinese insurance market has a 13% Compound Annual Growth Rate; it is the second largest insurance market in the world with 10% market share and is forecasted to become the largest by the mid-2030s – overtaking the current leader, the United States, which holds 39% market share based on data from the Insurance Information Institute.
Oct 28, 2020
Reinsurance
Aon's Reinsurance Analytics Team's annual HO ROE Outlook is a prospective report on the health and direction of the homeowners market. We replace actual historical catastrophe losses as measured by Property Claims Services with a modeled view of expected catastrophe loss. This year's report assesses the impact of COVID-19, catastrophe losses as a result of wind storms, wildfires, and hurricanes, as well as the business trends driving the future of the homeowners line of business.
Oct 13, 2020
Global Insurance Market Opportunities
The Insurance Risk Study, now in its 15th year, has evolved from its beginnings as a quantification study for enterprise risk management. We now take an expansive view of many issues related to risk, encompassing the growth dynamics, emerging risks, and operational challenges for insurers globally.
Oct 08, 2020
Impact Forecasting
Aon's Impact Forecasting team's latest edition of its monthly Global Catastrophe Recap report, which evaluates the impact of the natural disaster events that occurred worldwide during September 2020 to help identify trends, manage volatility, and enhance resilience.
Sep 15, 2020
Reinsurance Market Dynamics
Even as markets continue to evolve in the wake of COVID-19, reinsurance remains an accretive form of capital for insurers in managing volatility. Increased risk transfer over the last six months has demonstrated the value reinsurance provides to actively trade risks in the market.
Sep 10, 2020
Impact Forecasting
Aon's Impact Forecasting team's latest edition of its monthly Global Catastrophe Recap report, which evaluates the impact of the natural disaster events that occurred worldwide during August 2020 to help identify trends, manage volatility, and enhance resilience.
Aug 05, 2020
Impact Forecasting
Aon's Impact Forecasting team's latest edition of its monthly Global Catastrophe Recap report, which evaluates the impact of the natural disaster events that occurred worldwide during July 2020 to help identify trends, manage volatility, and enhance resilience
Jul 22, 2020
Impact Forecasting
Aon's Impact Forecasting's latest edition of its Global Catastrophe Recap report, which evaluates the impact of the natural disaster events that occurred worldwide during the first half of 2020 to help identify trends, manage volatility, and enhance resilience
Jul 10, 2020
Reinsurance Market Dynamics
Despite different market dynamics than in many past renewals, insurers were able to secure needed limit in the face of already reported COVID-19 related claims, future uncertainty regarding macroeconomic trends and premium volume impact from COVID-19 for the longer term.
Jul 09, 2020
Impact Forecasting
Aon's Impact Forecasting team today launches the latest edition of its monthly Global Catastrophe Recap report, which evaluates the impact of the natural disaster events that occurred worldwide during June 2020 to help identify trends, manage volatility, and enhance resilience.
May 18, 2020
Cyber
The Cyber Insights for Insurers newsletter – May2020 from Aon’s Reinsurance Solutions business equips readers with relevant trends for cyber underwriting and portfolio management, based on the latest developments in the threat and claims/regulatory landscape.
May 07, 2020
Impact Forecasting
Aon's Impact Forecasting team's latest edition of its monthly Global Catastrophe Recap report, which evaluates the impact of the natural disaster events that occurred worldwide during April 2020 to help identify trends, manage volatility, and enhance resilience.
Apr 23, 2020
Reinsurance Market Dynamics
Despite market and economic uncertainty renewals in April reflected the strong capital position of the market pre-COVID-19 and centered around strong underwriting principles. Markets experiencing higher losses in the prior year saw some rate adjustment while others renewed commensurate with renewals earlier in the year. Concerns remain regarding the short- and long-term impacts of COVID-19, perhaps most distressing among them the potential impact of sweeping regulatory mandates that would impair the industry.
Apr 22, 2020
Impact Forecasting
In 2015, the M7.8 Gorkha earthquake devastated Nepal causing more than USD175 million insured losses – but this was a fraction of the economic losses that reached USD5.1 billion. Five years on, we recap on the event, explore lessons learnt and reveal how Aon’s new catastrophe model can support in the future.
Apr 09, 2020
Impact Forecasting
Aon's Impact Forecasting team's latest edition of its monthly Global Catastrophe Recap report, which evaluates the impact of the natural disaster events that occurred worldwide during March 2020 to help identify trends, manage volatility, and enhance resilience.
Mar 02, 2020
Cyber
The Cyber Insights for Insurers newsletter – February 2020 from Aon’s Reinsurance Solutions business equips readers with relevant trends for cyber underwriting and portfolio management, based on the latest developments in the threat and claims/regulatory landscape.
Feb 20, 2020
Reinsurance
While the geographical extent of this Category 5 event was limited mainly to the islands of Abaco and Grand Bahamas, the record-setting landfall intensity and highly unusual storm path and trajectory – in combination with its extensive damage footprint – was so shocking that it reignited debate on whether the Saffir-Simpson Hurricane Wind Scale should be amended to add further categorization that would include such upper-echelon events.
Feb 13, 2020
Reinsurance
IFRS 17 is bringing about fundamental changes to insurance companies and with questions on reinsurance accounting now resolved, the spotlight has turned to the future of key performance indicators (KPIs). Aon’s report brings together perspectives from rating agency, investment bank and audit firm experts to help insurance companies as they seek to effectively report the financial health and performance of their business.
Jan 21, 2020
Impact Forecasting
The December edition of Impact Forecasting's monthly Global Catastrophe Recap report evaluates the impact of the natural disaster events that occurred worldwide during December 2019 to help identify trends, manage volatility, and enhance resilience.
Jan 09, 2020
Reinsurance Market Dynamics
New questions during renewal spurred discussions on ‘secondary’ peril loss experience, climate change, and regulatory and legislative impacts as well as social inflation, reserve levels, and evolving exposures in casualty (among others).
Reinsurance
The purpose of this Guide is to help U.S. ceding insurers determine the statutory reporting classification of recoverables from both U.S. domiciled assuming insurers (U.S. reinsurers) and non-U.S. domiciled assuming insurers (non-U.S. reinsurers).
Reinsurance
The cat bond market demonstrated strength on strength and finished the year strongly to post a second
consecutive record-breaking year of issuance volume at $12.50 billion, exceeding the previous record of $11
billion set in 2020. The market was driven largely by a combination of new and repeat sponsors, increases in deal
volumes, record maturities and spread compression. Over $10.15 billion in maturities combined with healthy ILS
Manager cash positions led to an attractive primary market and record issuance volume.
