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One big thing: Aon President Eric Andersen recently testified before the U.S. Senate Budget Committee to discuss the role insurance can play in mitigating climate risk.

“Climate risk poses substantial challenges to insureds and insurers alike. While insurance is based on the principle of diversifying risk, in many cases insurance risk management becomes more challenging as events become more interconnected across lines of business, geographical regions and perils,” said Andersen. “Aon is oriented around the philosophy that big problems need to be solved by collaboration and this has been exactly that — humanitarian, private and public sectors partnering to prove that solutions can be found together.”

For further insight:

• Aon’s 2023 Weather, Climate and Catastrophe Insight identified global natural disaster and climate trends to help make better decisions to manage volatility and enhance global resilience. The report revealed that natural disasters caused a $313 billion global economic loss during the 12-month period under review - 4 percent above the 21st-century average - $132 billion of which was covered by insurance.
• The World Bank, Aon and USAID teamed up in 2021 to mitigate hurricane risk in Jamaica through catastrophic coverage with bonds that will deliver $185 million in immediate liquidity to ensure humanitarian relief and facilitate immediate economic investment for infrastructure and property rebuild.
• Watch Andersen’s full testimony and read more in Scientific American, Insurance ERM and The Insurer.
• Read Aon’s 2022 ESG Impact Report here.