Aon Client Treaty Achieves Record Co-Insurance Capacity for 2025

Aon Client Treaty Achieves Record Co-Insurance Capacity for 2025

Aon plc (NYSE: AON) has proudly announced a significant milestone regarding its flagship product, the Aon Client Treaty (ACT), achieving record-setting support as it enters its tenth year of operation. This innovative program continues to evolve, ensuring clients have the resources they need to navigate complex risk landscapes effectively.

Enhanced Co-Insurance Capacity

For the year 2025, ACT will now co-insure 28.5 percent of the business placed through Aon's Global Broking Centre. This increase from 22.5 percent in 2024 marks the largest expansion in capacity since the treaty's inception. Since its launch in 2016, over $3.5 billion in gross written premium has been successfully placed, highlighting the program’s growth trajectory and relevance in today’s insurance market.

New Market Partners and Strategic Intent

One of the driving factors behind ACT's success is its collaboration with market partners. For the upcoming year, three new market participants will join the treaty, while all existing partners have renewed their commitment, further strengthening Aon's position in the market. Notably, QBE will continue its role as a lead partner, showing confidence in this thriving initiative.

Introducing the ACT Client Dividend

In addition to its expanded capacity, Aon is introducing an innovative feature called the ACT Client Dividend. This initiative will provide clients with a 1.5 percent reduction on the portion of premiums placed through ACT, aligning Aon’s objectives with those of its clients, and fostering a mutually beneficial environment.

Leadership Insights on ACT’s Growth

Joe Peiser, CEO of Commercial Risk for Aon, emphasized the value delivered by the Client Treaty: "The renewal and expansion of Aon Client Treaty, now in its tenth year, reflects the value it delivers for both clients and participating market partners. As the complexity and size of the risk landscape increases, it is essential that our clients access the insurance capacity they need with speed and certainty."

Meanwhile, Tracy-Lee Kus, CEO of Aon's Global Broking Centre, acknowledged the role of innovation in this journey, stating, "Innovation is essential to allow clients to access risk capital more efficiently. Aon's significant investment in managing data has been a key factor in the growth and sustainability of ACT. We will continue to invest and scale this revolutionary approach to securing risk capital on behalf of our clients."

Client-Centric Solutions within ACT

ACT embodies Aon's commitment to aligning client needs with market capabilities. The program offers a blend of services designed to enhance client experiences and improve risk management. Each of these innovative solutions contributes to a more robust and sustainable insurance offering.

Comprehensive Client Services

ACT provides a global network of client experts that work in tandem with Aon’s Global Broking Centre, ensuring optimal placement strategies tailored to client needs. The program also includes delegated underwriting and exposure management services through Aon’s Managing General Agent, Aon Underwriting Managers, to expertly govern risk and volatility according to market partner specifics.

Additionally, actuarial and consulting services through Aon’s Strategy and Technology Group offer invaluable insights and projections that further equip clients to make informed decisions related to risk and capital management.

Conclusion

As Aon plc prepares for this pivotal year, the enhanced Aon Client Treaty is designed to provide industry-leading support to clients seeking effective solutions for their risk management needs. With innovations like the ACT Client Dividend and a commitment to long-term partnerships with market participants, Aon continues to prove its leadership in the global insurance arena.

Frequently Asked Questions

What is the Aon Client Treaty?

The Aon Client Treaty is Aon's primary platform for placing business in the London Market, designed to support clients with innovative risk management and capital solutions.

How much has the co-insurance capacity increased for 2025?

For 2025, the co-insurance capacity has increased to 28.5 percent, up from 22.5 percent in the previous year.

What is the ACT Client Dividend?

The ACT Client Dividend is a new feature providing a 1.5 percent reduction on the premiums placed through the Aon Client Treaty, aimed at benefiting clients financially.

Which new market partners are joining in 2025?

While specific names of the three new market partners have not been disclosed, all existing partners have confirmed their participation for the upcoming treaty year.

How long has the Aon Client Treaty been in operation?

The Aon Client Treaty has been operational since 2016 and is now entering its tenth year, demonstrating resilience and adaptability in a changing market.

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