Global Insurance Market Opportunities

When data meets analytics – how will innovation open up new insurance markets?

Aon’s thought leadership series explores how the insurance industry is creating new products to be relevant to customers and stay ahead of the game in a constantly changing world.

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Global P&C business again produced an underwriting profit in 2018, with a combined ratio of 98.9%

Motor insurance is the fastest growing line of business, with 6.8% annual growth over the past five years, driven by strong growth in China, Brazil, and the US

For the fourth year in a row, Malaysia, Indonesia, and Singapore are ranked within the top five positions in Aon’s Country Opportunity Index

By Tom Roth

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Insurance Risk Study: Global risk, profitability and growth metrics – 14th edition

With access to global resources and a broad network of local market practitioners, we are equipped to provide insight across a spectrum of lines, products, and geographies.

Insurance Risk

Insurance Risk Study: Global risk, profitability and growth metrics – 13th edition

by Tom Roth

Insurance Risk

Motor insurance is the fastest growing line of business, with 6.7% annual growth over the past five years,

driven by strong growth in and

Argentina

China, Brazil,

Saudi Arabia.

Mapping the streets of key cities

Using machine learning to identify preventative measures

Simulating what an attack may look like and estimating losses

Kelly Superczynski

Matt DiSanto

Recent legislation passed in 10 states (and growing) substantially expands a US company’s ability to manage legacy liabilities:

Divide its book of business, including liabilities, into a separate entity (Division Statute)

Transfer business, including liabilities, into a separate entity (Insurance Business Transfer)

Matthew Honea

by Jon Laux

A cyber-attack on a US dam could cause a silent cyber exposure to insurers, with total insured losses of up to $10 billion.

‘Silent cyber’ exposure is the potential for cyber risk to trigger losses on traditional insurance policies – such as property or casualty – where coverage is unintentional, unpriced, or simply excluded.

$10 billion

(by comparison, initial estimates of insured losses resulting from wind and storm surge damage from Hurricane Michael have ranged up to $10 billion)

2007

2012

700

Number of Incidents Over Time

350

2018

Terrorism

by Emma Karhan

How is Terrorism Impacting Insurance Markets?

Terrorism reinsurance pools have been setting an example of how PPEs should look to the future, adapting to maintain their effectiveness in a changing environment

Investment

Gerard-Jan Van Berckel

Investment Opportunities

The investment opportunity presented by the real estate debt market is significant, with nearly £1000bn of debt available in Europe alone.

Silent Cyber Scenario: Opening the Flood Gates

Cyber

Division Statutes and Insurance Business Transfers

Divide or Transfer: The newest legacy liabilities restructuring mechanisms

Legislators and regulatory insurance departments are acknowledging that insurers need new tools to effectively manage run-off and legacy liabilities, whether it is for finality, capitalization, solvency, or operational efficiency.

Machine learning

Modelling the Evolving Terrorism Landscape: A Data Scientist’s Perspective

Taking advantage of the ability to automatically analyse data at scale we are generating new insights into the spatial risks of terrorist attacks and their outcomes

By Dr. Stephen Tench

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Volcanic Eruptions

The Protection Gap and Large Volcanic Eruptions

A super-eruption has a 1-in-500 year chance of occurrence but do insurance policy wordings reflect the potential near-global consequences?

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Flood

A Scientists Guide to Insuring Flood: 5 things you need to know

The risk of flood is prevalent all over the world, causing ~ USD550 billon of global economic damage over the past decade

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Protection Gap

The Role of Insurance in Building Resilience: Closing the Protection Gap

Terrorism reinsurance pools have been setting an example of how PPEs should look to the future, adapting to maintain their effectiveness in a changing environment

READ ARTICLE

How can businesses use capital to effectively address weather and climate-related risks?

88%

of companies' profitability is impacted by weather

$353 b

in economic losses vs.

$132 b

in insured losses by natural disasters

2017's Protection Gap

The difference between the cost of damages and what’s covered.

by Liz Henderson

by Petr Punčochář

Climate Risk

Weather volatility and chronic climate risk: a growing capital efficiency gap

Climate resilience is about both being prepared and being able to deal with shocks from a variety of systems - whether from the natural environment or from technological or policy change.

by Greg Lowe

VEI 7 Eruption

2 VEI 7 eruptions recorded every 1,000 years.

1,000

Potential annual production losses of wheat, maize, rice and soybean equal to the food for 2.3 billion people

By Russell Blong

by Dan Weber

Insurer Talent Gap

Bridging the Insurer Talent Gap

Digital is a mindset — which means it takes much more to create and sustain it than just implementing new technologies.

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by Thomas Croshaw

Social Media

Social media’s role in disaster response: the next evolution

From response to recovery, social media has been an effective communication medium during catastrophic events, particularly natural disasters

READ ARTICLE

by Tracy Hatlestad

A Conversation with Jeffrey Ma: Success with Analytics and why it’s easier to win at Blackjack than insurance

Predictive Analytics

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Artificial Intelligence

Demystifying Artificial Intelligence

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Blockchain

Blockchain: Mechanics and Magic

Database users have three concerns: does the data have integrity, is the data valid, and is the data secure? Blockchain offers innovative solutions to these three concerns.

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by Steve Mildenhall

“disruptive technologies / innovation” such as VR and AI, as an “emerging risk”

Respondents to Aon’s 2017 Global Risk Management Survey cite

– one predicted to be in the in just a few years.

top 10 list of risks

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by Paul Eaton

“A long-term perspective is critical - especially within the industry. Short-term variances will always exist, but building a process and trusting it is crucial in achieving long-term success”

- Jeffrey Ma, Former VP, Analytics/Data Science, Twitter

$3.2 billion

An estimated

Source: Hootsuite

people

are

active users of social media

What does technology mean to your business?

Upskilling vs attracting new talent

Opportunities to outsource talent

Strategically uniting business and technology for better results

Internet of Things

Why the Internet of Things should be on insurers' radars

Only 1% of IoT vulnerabilities are reported about a specific device, according to research by Finite State.

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20.4 billion connected devices by 2020

By Emma Karhan

By Kelly Superczynski

By Matt Wyckhouse

Virtual Claims

Virtual claims in a post COVID-19 world

“As is ever the case throughout history, enormous uncertainty and disruption can foster change that benefits both the customer and business.”

READ ARTICLE

By Wes Williams

By Mike Cummings

By Brian Siemsen

All files are securely stored for instant review

Desktop assessor guides customer through live stream

Customer streams live video from their mobile device

Customer receives SMS link to download app or connect through browser

Desktop assessor calls customer to carry out inspection

Machine learning

Modelling the Evolving Terrorism Landscape: A Data Scientist’s Perspective

Taking advantage of the ability to automatically analyse data at scale we are generating new insights into the spatial risks of terrorist attacks and their outcomes

READ ARTICLE

All files are securely stored for instant review

Desktop assessor guides customer through live stream

Customer streams live video from their mobile device

Customer receives SMS link to download app or connect through browser

Desktop assessor calls customer to carry out inspection

By Wes Williams

By Mike Cummings

By Brain Siemsen

By Richard Rosano

Virtual claims audit

Navigating the new normal - Virtual reinsurance claim audits are the wave of the future

“With the impact of COVID-19, virtual claim audits have come to the forefront as a necessity.”

By Ann Field

READ ARTICLE

By Kelly Superczynski

Internet of Things

Why the Internet of Things should be on insurers' radars

Only 1% of IoT vulnerabilities are reported about a specific device, according to research by Finite State.

By Matt Wyckhouse

READ ARTICLE

Cedent Network

Remote access through secure, encrypted internet connection: VPN

Reinsurer network

Cedent Network

Remote access through secure, encrypted internet connection: VPN

Reinsurer network

Indonesia ranks within the top 5 positions and could grow premium by $17b if premium-to-GDP ratio matched the global average of 2%.

Geographic Opportunities Index suggests looking beyond developed economies to achieve strong insurance growth for the property casualty market.

By Tom Roth

READ ARTICLE

Insurance Risk Study: Global risk, profitability and growth metrics – 14th edition

With access to global resources and a broad network of local market practitioners, we are equipped to provide insight across a spectrum of lines, products, and geographies.

Insurance Risk

Indonesia ranks within the top 5 positions and could grow premium by $17b if premium-to-GDP ratio matched the global average of 2%.

Geographic Opportunities Index suggests looking beyond developed economies to achieve strong insurance growth for the property casualty market.

By Tom Roth

READ ARTICLE

Insurance Risk Study: Global risk, profitability and growth metrics – 15th edition

Beyond risk modeling, we provide our clients with very granular, customized market intelligence to create business plans that are realistic, fact-based, and achievable.

Insurance Risk

By Hanna Wang

China InsurTech

What’s going on in China’s InsurTech space?

The outbreak of COVID-19 brought an unprecedented opportunity for online insurance sales

READ ARTICLE

By Richard Rosano

Virtual claims audit

Navigating the new normal - Virtual reinsurance claim audits are the wave of the future

“With the impact of COVID-19, virtual claim audits have come to the forefront as a necessity.”

READ ARTICLE

An increase in the awareness of the necessity of health insurance

Innovative distribution approaches such as livestreaming insurance sales gained popularity `

Online channels took over due to its ‘contactless’ nature

An increase in the awareness of the necessity of health insurance

Innovative distribution approaches such as livestreaming insurance sales gained popularity `

Online channels took over due to its ‘contactless’ nature

READ ARTICLE

By Tom Griffiths

Trading during volatile times: Reinsurer performance and strategy

Reinsurance is an inherently volatile industry, and reinsurers must strike a balance between the needs of their cedants and the needs of their shareholders. Developing a strategy and portfolio that delivers the right risk reward trade-off is key.

of their profitability-volatility trade off

The composition of a reinsurer's portfolio is a prime driver

Rethinking access to capital >> Performance and strategy

By Lucy Griffin

By Jamie Douglas

Performance and strategy

By Tom Griffiths

By Jamie Douglas

By Lucy Griffin

Trading during volatile times: Reinsurer performance and strategy

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By Hanna Wang

What’s going on in China’s InsurTech space?

The outbreak of COVID-19 brought an unprecedented opportunity for online insurance sales

The potential of industry 4.0 >> China InsurTech

of their profitability-volatility trade off

The composition of a reinsurer's portfolio is a prime driver

By Hanna Wang

By Wes Williams

By Mike Cummings

By Brian Siemsen

Virtual claims

Virtual claims in a post COVID-19 world

“As is ever the case throughout history, enormous uncertainty and disruption can foster change that benefits both the customer and business.”

READ ARTICLE

of their profitability-volatility trade off

The composition of a reinsurer's portfolio is a prime driver

of their profitability-volatility trade off

READ ARTICLE

By Coco Feng

A new era for China Critical Illness Products

The revised Critical Illness definition and Industry CI Experienced Incidence Rate Table 2020 reflect the progress of medical technology and the product evolution in recent years, and will play a key role in guiding China CI insurance products.

Navigating new forms of volatility >> Critical Illness

2007: The first Insurance Industry Standard CI Definition was published

2013: The first Insurance Industry CI Experienced Rate Table (2006 – 2010) was published

2021: February 1: All CI policies should use the new definition to sell, and the CI Experienced Rate Table is to be used for pricing and valuation

2020: November 5: Standard CI Definition 2020 and Industry CI Experienced Rate Table 2020 were published

2019: January: The Insurance Association of China (IAC) and the China Association of Actuaries (CAA) set up a CI working group and began the revision work

READ ARTICLE

By Tom Griffiths

Trading during volatile times: Reinsurer performance and strategy

Doing business in a volatile world >> Performance and strategy

Critical ILlness