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Aon Expands Daily Loss Intelligence Service to Help Insurers Navigate Escalating U.S. Severe Storm Risk

LONDON, Mar. 26, 2026 - Aon plc (NYSE: AON), a leading global professional services firm, today announced the expansion of its Automated Event Response (AER) service to include U.S. Severe Convective Storms (SCS), further helping insurers to manage losses, deploy resources and respond quickly to policyholders during active weather events.

U.S. SCS has emerged as one of the most volatile sources of catastrophe loss for the insurance industry. According to Aon’s 2026 Climate and Catastrophe Insight report, SCS has become the costliest insured peril of the 21st century on a cumulative basis, with approximately $794 billion in price-inflated insured losses. In the U.S. alone, SCS drove $52 billion in insured losses in 2025, reinforcing the need for faster, decision-ready loss intelligence during active events.

An expansion of Aon’s existing AER platform, which already covers perils including U.S. hurricanes, European windstorms and Japanese typhoons, the U.S. SCS service combines Aon’s latest SCS catastrophe model with daily meteorological data and storm reports to provide updated event loss estimates aligned to how insurers manage their portfolios, capital, and business operations as events occur.

Against continued loss pressure from SCS on insurers’ profitability, the AER solution is designed to support faster, more confident decisions during active events and in the critical days that follow. By delivering daily, decision‑ready loss and claims count estimates, AER helps insurers manage SCS volatility across underwriting, exposure management, reinsurance and claims. Key benefits include:

  • Drives faster response times with greater confidence – Daily loss insights support earlier operational decisions, including claims triage, staffing and communications with executives and key stakeholders.
  • A view of gross, ceded and net positions in reinsurance terms – Customizable event windows and financial breakouts help carriers evaluate losses in line with treaty structures and hours clauses, supporting more informed decisions on reinsurance usage, reinstatements and capital deployment.
  • Strengthened stakeholder communications – Automated, email‑based delivery reduces the need for manual model runs or data consolidation across platforms, allowing catastrophe, exposure management and claims teams to focus more time on interpreting results and advising the business rather than on process.
  • The ability to make clearer portfolio and pricing decisions around SCS tail risk – By leveraging Aon’s latest SCS catastrophe model and the trends highlighted in its Climate and Catastrophe Insight report, carriers can better understand event severity, informing portfolio optimization, pricing strategies and future capital decisions.

Tracy Hatlestad, head of North America analytics for Aon’s Reinsurance Solutions, said: “Severe convective storms are no longer isolated events for insurers – they are an ongoing source of volatility that is reshaping how capital and claims decisions are made. During active events and in the days that follow, carriers face increasing pressure to act earlier, communicate clearly and understand their net positions while loss information is still evolving. Having daily, decision‑ready loss insights is becoming critical to managing U.S. SCS exposure with clarity and confidence.”

Aon’s AER service for U.S. SCS includes the following key functionality:

  • Daily modeled loss calculations – The service draws on daily meteorological observations and storm reports to calculate modeled losses following severe convective activity, providing early insight into potential loss levels across portfolios, regions and lines of business.
  • Customizable event definitions aligned to contract structures – Users can define events using flexible time windows – such as one‑day or four‑day periods, or any multiple of 24 hours – and apply financial breakout options that reflect specific reinsurance terms and hours clauses.
  • Dynamic updates for 72 hours post-event – Modeled losses are refreshed as new or revised data becomes available for up to 72 hours after an event, enabling estimates that are both rapid and refined, including updated confidence intervals.

Aon’s AER is a complementary solution within Aon’s broader analytics and advisory offering, enhancing clients’ ability to act quickly as catastrophe events unfold. By delivering automated, daily loss insights directly to decision‑makers, AER strengthens existing modeling, claims and event response workflows, helping clients respond with greater speed, confidence and coordination.

To learn more about Automated Event Response, click here: https://www.aon.com/en/capabilities/reinsurance/automated-event-response

For further details, see the full 2026 Climate and Catastrophe Insight report: 20260120-cci-2026.pdf

For information about Aon’s Reinsurance Solutions: https://www.aon.com/en/capabilities/reinsurance

 

About Aon

Aon plc (NYSE: AON) exists to shape decisions for the better — to protect and enrich the lives of people around the world. Through actionable analytic insight, globally integrated Risk Capital and Human Capital expertise, and locally relevant solutions, our colleagues provide clients in over 120 countries with the clarity and confidence to make better risk and people decisions that protect and grow their businesses.

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Media Contact

Andrew Wragg

+44 (0) 7595 217168

andrew.wragg@aon.com

 

 

 

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