London – 7 February 2005 – The impact of climate change and a growing raft of environmental legislation are set to be two of the fastest growing risks to UK businesses according to Aon’s 2005 Risk Report, which also looks at several other key risk areas from directors’ and officers’ liability, to the global threat of terrorism and the implications of London securing the 2012 Olympic bid.

The study, launched today, explores the impact of the changing climate and finds that UK businesses will face a number of new weather risks, such as the increased risk of flooding, as well as having to deal with new compliance measures designed to mitigate the effect of climate change. In addition, new environmental legislation will require businesses to meet hitherto unseen levels of disclosure around their environmental exposures.

Alongside the risk management issues facing UK companies in the forthcoming year, the report also sets out the major milestones and regulatory measures coming into force that are likely to alter the profile of the market further.  

New legislation being introduced, such as the Operating & Financial Review, which aims to improve corporate reporting standards, and the European Energy Trading Scheme, to name but two, will have significant impacts on company balance sheets and the disclosure of potential risk exposure going forward.  Such pressures, as well as the more unexpected global events associated with climate change and natural disasters, continue to make the world of risk more unpredictable. 

Dennis Mahoney, chairman and chief executive officer of Aon Limited, commented: ”Some risks may appear to be more illusory than real. While this year’s Risk Report is not a crystal ball, it tries to encapsulate some of the risk management issues that we know to be facing UK companies in the coming year. This reflects our belief that if we manage the visible and likely risks, it will put us in a better position to deal with the unforeseen and unpredictable ones.”

Notes to Editors
 

About Aon

Aon Corporation (www.aon.com) is a leading provider of risk management services, insurance and reinsurance brokerage, human capital and management consulting, and specialty insurance underwriting. The company employs approximately 52,000 professionals in its 600 offices in more than 120 countries.  Backed by broad resources, industry knowledge and technical expertise, Aon professionals help a wide range of clients develop effective risk management and workforce productivity solutions.

This press release contains certain statements relating to future results, which are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995.  These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from either historical or anticipated results, depending on a variety of factors.  Potential factors that could impact results include the general economic conditions in different countries around the world, fluctuations in global equity and fixed income markets, exchange rates, rating agency actions, resolution of regulatory issues, including those related to compensation arrangements with underwriters, pension funding, ultimate paid claims may be different from actuarial estimates and actuarial estimates may change over time, changes in commercial property and casualty markets and commercial premium rates, the competitive environment, the actual costs of resolution of contingent liabilities and other loss contingencies, and the heightened level of potential errors and omissions liability arising from placements of complex policies and sophisticated reinsurance arrangements in an insurance market in which insurer reserves are under pressure.  Further information concerning the Company and its business, including factors that potentially could materially affect the Company’s financial results, is contained in the Company’s filings with the Securities and Exchange Commission.

Aon Limited is authorised and regulated by the Financial Services Authority in respect of insurance mediation activities only.