Aon, a leading global professional services firm, has launched its Growth Decision Framework - a consulting service that assists insurers to develop the positive traits associated with optimum performance and that enable market cycle resilience. It has been launched as insurers approach the January 2025 renewal season.
Aon’s proprietary study of more than 100 global (re)insurers has resulted in detailed analyses of the firms that have consistently outperformed through market cycles, focusing on their abilities in the categories of risk appetite, speed and agility, data and analytics, underwriting, talent, distribution, and capital. The Framework draws on this research to assist clients to achieve such best-in-class traits.
Aon works with insurers to develop their portfolios using metrics, including expected profitability, volatility of underwriting results, capital requirements (regulatory, rating agency and economic), capital consumption, and risk-adjusted return. This process allows leaders to:
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Prioritise market segments based on strategic objectives
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Access market benchmarks
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Understand distribution channels and the strengths and weaknesses of incumbent competitors
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Identify investment and practical execution plans
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Develop future workforce and technology strategies
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Collaborate with Aon on practical next steps
Mr Andy Marcell, CEO of Risk Capital and CEO of Reinsurance at Aon, 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.”