Aon and Moody's Insurance Solutions have announced the expansion of their reinsurance casualty collaboration into commercial risk.
The new collaboration will deliver insights around climate casualty and other emerging risks, risk mitigation strategies, and excess casualty named-peril products to commercial insurance buyers.
As dynamics in areas including social inflation and litigation finance create new emerging risks with increased frequency and severity, named-peril products can help drive efficient risk transfer and insurance premium growth, as well as better casualty protection for clients at risk-appropriate pricing. This reduces uncertainty around exclusions, insufficient limits and coverage disputes.
The expanded collaboration between Aon and Moody’s combines the advanced technology of Moody’s casualty unit – which identifies and models more than 300 emerging risk perils – with Aon’s extensive global relationships both in the traditional and alternative capital sectors. This synergy facilitates the more efficient allocation of capital to risk in order to shape better business decisions for Aon clients when managing their casualty portfolios.
Aon global product leader for reinsurance solutions Amanda Lyons said that the collaboration with Moody’s is now creating products that better reflect exposures and offer more attractive pricing for both commercial risk and reinsurance. “This helps businesses make better decisions and supports reinsurance clients and original buyers in confidently pursuing growth strategies," she said.
Moody’s head of casualty market development Robert Reville said that the increasingly volatile liability environment challenges the entire value chain of insurance – from the original buyers to their insurers and reinsurers. “In this environment, we expect named-peril products to lead to the emergence of a casualty catastrophe market. We are delighted to work with Aon to drive such innovation in the re/insurance market,” he said.