Aon and Moody’s Join Forces to Revolutionize Casualty Risk Management and Drive Insurance Innovation
Aon has recently strengthened its partnership with Moody’s Insurance Solutions, focusing on advancing product innovation within the casualty re/insurance sector. This collaboration aims to significantly reduce latency and accumulation risks while enhancing overall portfolio management for commercial insurance buyers.
Aon and Moody’s Collaboration Overview
The expanded collaboration now emphasizes commercial risk, specifically targeting:
- Climate casualty
- Emerging risks
- Development of named-peril products
Enhancing Capital Allocation and Risk Management
By leveraging Moody’s extensive modelling of over 300 emerging perils alongside Aon’s global capital network, these firms aim to:
- Improve capital allocation
- Enhance casualty portfolio management
- Support more efficient risk transfer
- Facilitate better pricing
Creating a Casualty Catastrophe Market
This innovative initiative is paving the way for a potential casualty catastrophe market, which Aon’s global product leader for Reinsurance Solutions, Amanda Lyons, emphasizes:
“Traditional casualty clash solutions have struggled to provide capital-efficient coverage. Our 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.”
Industry Insights from Moody’s
Robert Reville, Moody’s head of casualty market development, highlighted the challenges posed by an increasingly volatile liability environment:
“The entire value chain of insurance is under pressure—from 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.”
Conclusion
The collaboration between Aon and Moody’s Insurance Solutions represents a significant advancement in the casualty re/insurance sector. By focusing on innovative product development and improved risk management strategies, this partnership is set to transform how businesses approach insurance and reinsurance solutions.
For more information about Aon’s initiatives, visit Aon’s official website. To learn more about Moody’s Insurance Solutions, check out Moody’s website.
