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Aon is a global provider of risk management, insurance and reinsurance brokering, human resources solutions, and outsourcing services.
Although originally founded in 1919, it wasn't until 1987 that the company was renamed as Aon, 5 years after a merger between Chicago insurers, Ryan Insurance Group and Combined Insurance Company of America. The latter was later acquired in 2007 by ACE Limited for $2.4 billion after Aon announced the divestiture of its underwriting business.
As part of their risk management, they work in a wide range different industries ranging from aerospace & aviation to renewable energy. Aon's risk management solutions include underwriting, cyber solutions, insolvency and restructuring, fleet solutions and more. Their reinsurance services include analytical & actuarial solutions, Aon securities, claims, contract wording & client services, facultative reinsurance and treaty reinsurance. Within the human resources bracket, they provide a number of different products related to health & benefits, retirement & investment and international pensions & benefits.
Employing more than 66,000 colleagues worldwide in over 120 countries, their companies work in synergy with each other to work across borders and establish its Global Client Network. This worldwide network of companies lets them tap into the most innovative risk solutions, no matter where they were created; an industry expert in Europe can access information in the United States and deliver a solution seamlessly to a client in Asia.
Aon leverages proprietary data and analytics to give clients greater efficiency and stability. Aon's dedicated Centre of Innovation and Analytics (ACIA) uses its insight to discover and deliver innovative new products and services throughout the various divisions within Aon and in 2019, the firm announced it had partnered with insurtech Claim Central to streamline claims management capabilities for the benefit of its clientele.
Later that year, the insurer revealed another strategic tie-up - this time, a commercial agreement with CoverWallet to serve SMEs' insurance needs. Although initially starting in Australia, both companies plan to expand the service to additional countries, including the U.S. The current partnership provides Aon with additional access to the $100 billion SME digital insurance market.
In 2019, Aon announced it had partnered with software company Skytek to provide real-time monitoring of insurers’ marine risks. Supported by the European Space Agency (ESA), its satellite tracking enables re/insurers to visualise the exact location of their insured risks alongside crucial vessel and cargo information in order to provide better underwriting decisions and reinsurance programs. Later that year, they would also team up with Guy Carpenter on a blockchain project looking to bring greater efficiency to the reinsurance placement process; They would ally with cyber risk analytics provider CyberCube to leverage its cyber risk aggregation modelling platform, CyberMetrica; And, last, they teamed up with digital asset custody technology firm, Metaco, to line up a panel of insurers to provide cryptocurrency coverage for clients of Metaco. The group of unnamed, mostly European insurers offer a crime insurance product to institutions using Metaco’s SILO solution for online and offline wallets.
In the same year, Aon also partnered with Bunker. Through the commercial agreement, Bunker will be able to utilise Aon's enterprise network, whilst Aon and its clients will be able to access Bunker's compliance dashboard and Live COI.
Since inception, Aon has made multiple acquisitions, including Inspiring Benefits in April 2018 for an undisclosed amount. Two notable acquisitions were that of the Benfield Group for $1.43B in December 2008 and Hewitt Associates for $4.9B in October 2010. These two companies operated under the names Aon Benfield and Aon Hewitt until recently, when they became integrated within the branches of Aon plc. These different branches are Commercial Risk Solutions, Reinsurance Solutions, Retirement Solutions, Health Solutions, and Data & Analytic Services.
In 2019, after several months of partnership, Aon acquired CoverWallet, a digital insurance platform for SMEs. The amount was not disclosed.
Despite their recent report findings that 2019 closed out the most expensive decade on record for claims arising from natural disasters, global insurer AON posted record profits of $1.53BN - a 35% improvement on last year based on revenue growth of 2% YoY.
In February 2020 Aon announced it had acquired cybersecurity platform Cytelligence, which provides advisory, digital forensics, consultancy and training. The startup joins Aon's Cyber Solutions division, and its CEO will become Aon's Canadian President for Cyber Solutions.
In March 2020 it was revealed that Aon Plc had agreed to purchase Willis Towers Watson in a transaction believed to be worth around $30bn - making it the insurance industry's biggest ever deal. The all-stock transaction combines the second and third largest brokers in the world. Case and CFO Christa Davies will lead the combined company.
Later that year, in June, Aon announced changes to its cyber risk assessment methodology to address the risks presented during the Covid-19 pandemic, such as amplified exposure due to remote working and policy changes.
In August 2020 Aon partnered with insurtech Skytech, leveraging their new hurricane tracking system to evaluate the risk presented to cargo, hill and off-sure assets in relation to the hurricanes.
In December Aon announced it had formed a Special Purpose Acquisition Company (SPAC) Task Force.
In March 2021 Aon launched a personal car leasing product, based on a telematics-powered pay-per-use pricing model. Called Flee, the product will initially launch in Italy, and has been designed for Aon's business client employees to meet the needs of those who are now working from home more due to the Covid-19 pandemic. The telematics technology for the product is provided by Targa Telematics.
The following month, in April, Aon launched a $75m Covid-19 vaccine global cargo product with insurtech Parsyl, Ascot Group, Munich Re, as well as a number of other insurers. The solution will leverage sensor data and analytics to ensure vaccines stay within the correct temperature range during transport, with real-time reporting to help mitigate against losses. Aon has stated it will donate 100% of all revenues earned from this solution in 2021 to a charity dedicated to eradicating the global human and economic toll of the pandemic.
In July 2021 Aon forged a partnership with German startup Walbing, aimed at establishing a service tailored for syndicated trade credit insurance to ensure that trade credit insurance is no longer a setback for global insurance supply chains post-Covid-19.
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