For the first time, Aon Risk Solutions, the global risk management business of Aon plc (NYSE: AON), launches a sequel to its 2013 Global Risk Management survey. The 2014 Underrated Threats report closely examines several shocking findings from the most recent survey.
New research shows that events in many countries around the world have raised concerns about the ranking of key risks on the top 50 list. Most notably, 83 percent of respondents agree that computer crimes, such as hacking, were ranked far too low at 18 in the 2013 survey. Similarly, more than half of the research respondents stated that a ranking of 46 was also too low for terrorism risk, given the pending expiration of the Terrorism Risk Insurance Act.
“In response to TRIA's uncertain future, Aon has seen a 30 percent increase in purchasing within the standalone terrorism market,” said Aaron Davis, managing director with Aon Risk Solutions’ Property practice. “If it is not extended, the loss of direct access to TRIA will substantially reduce terrorism limits for U.S. assets. Additionally, the private market most likely will not have enough capacity to take on this added risk should TRIA not be renewed. Companies should be in a planning position right now to prepare for this possible outcome.”
Preparing ahead of the expiration deadline becomes crucial for companies that may be facing several challenges at this renewal, such as the impact on embedded TRIA coverage, standalone terrorism pricing and TRIA captive placements. Aon’s recent research shows that many industries are at a high risk if TRIA is not renewed, specifically health care, transportation, real estate and financial institutions.
To help companies in this situation, Aon designed several innovative products and solutions to help provide the best available protection for all businesses, including:
Aon's exclusive North American Standalone Terrorism Structured Portfolio Solution offers clients up to $500 mm of terrorism limits to either augment or replace TRIA capacity.
“In conducting this and other research, it has become clear that risks are growing in complexity, becoming increasingly interdependent and requiring more innovative and creative solutions,” said Stephen Cross, chairman of Aon Global Risk Consulting. “This constellation effect of, or interconnectivity between, risks might not always have been recognized by organizations but could have a significant impact on their approach to risk management and overall business performance.”
To download the Underrated Threats report: www.aon.com/underratedthreats
To download the 2013 Global Risk Management Survey: http://www.aon.com/2013GlobalRisk/
The 2014 Underrated Threats report is Aon’s first research report into the perceived importance of risks as seen by captive directors. It analyzes the responses from over 100 organizations representing a broad range of countries, revenue sizes and business sectors. It presents key findings from the 2013 Global Risk Management Survey and asks captive executive and non-executive directors for their opinions on the rankings of various risks and findings as identified by over 1,400 risk decision makers including risk managers, CFOs and CEOs globally.
Aon plc (NYSE:AON) is the leading global provider of risk management, insurance and reinsurance brokerage, and human resources solutions and outsourcing services. Through its more than 66,000 colleagues worldwide, Aon unites to empower results for clients in over 120 countries via innovative and effective risk and people solutions and through industry-leading global resources and technical expertise. Aon has been named repeatedly as the world’s best broker, best insurance intermediary, reinsurance intermediary, captives manager and best employee benefits consulting firm by multiple industry sources. Visit www.aon.com for more information on Aon and www.aon.com/manchesterunited to learn about Aon’s global partnership and shirt sponsorship with Manchester United.
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