Interview: George deMenocal, Aon’s Reinsurance Solutions US business
New risks and a united front
Cyber, alternative capital and shifting government risk into the private sector will be
some of the talking points at PCI—as will Aon’s changes to its brand, George deMenocal
of Aon’s Reinsurance Solutions US business tells PCI Today.
Tuesday October 30 2018 PCI Today Day 3
There have been some significant
changes at Aon—will they be
apparent at PCI?
Aon announced earlier this year that it
was retiring its Aon Benfield and Aon Risk
Solutions brand names, having already retired
the Aon Hewitt brand in 2017. This has allowed
the firm to approach clients and stakeholders
simply as ‘Aon’.
Internally, we have long talked about ‘Aon
United’ as a concept of how we work, but
these latest changes have helped us to remove
structural barriers globally within our firm and
to operate as a coordinated network of colleagues
in this united way. People will notice this change
in our meetings at PCI in terms of the breadth of
discussions we are now able to have.
What capabilities do you bring to the
We have representatives at PCI from all of our
16 US practice groups, which support clients
across a huge range of business lines. Each
practice group has quantitative and qualitative
risk management strategies for its individual
client portfolios, based on our firm’s wealth of
market data and associated analytics.
Coming back to the Aon United ethos,
these groups will be far more connected going
forward, allowing us to work across the scope
of our clients’ businesses, and offer them
seamless access to diversified forms of capital
on a global basis.
Which topics will be under the
microscope this year?
There will be the traditional discussions in
the casualty and property spaces around
available capacity, losses, new exposures, and
optimisation of capital. In terms of the latter,
a few weeks ago we were excited to announce
the launch of our Capital Advisory team in the
US, which follows the launch of the Capital
Advisory function based in London.
These new units are a great example of Aon
United, as they bring expertise to clients on
the asset and the liability side of the balance
on cyber risk and how it can be covered, and
our firm has launched a ‘silent cyber’ product
to help address our clients’ exposures.
Another topic will be the prospective
influence of insurtech, which continues to
show growth and maturity, and is targeting
the entire insurance ecosystem—moving well
beyond the distribution arena and into ways
to leverage artificial intelligence, data and
analytics and automated technologies across
various lines of insurance business.
Aon has formed partnerships with insurtech
entities to support our clients in a variety of
lines of business, including Clara in workers’
compensation claims diagnostics; and Claims
Logic, which digitises claims and enhances the
customer experience in personal property lines.
Aon has placed a lot of emphasis on
the protection gap. Is it starting to
We have continued to make great inroads
worldwide into projects that de-risk the
balance sheets of governmental and quasigovernmental
organisations. We launched a
Public-Private Enterprise practice in London
just a few weeks ago, which will coordinate
with our government and credit practice in the
US, and our investment banking team, Aon
Aon Securities structured the largest ever
earthquake catastrophe bond this year on
behalf of the World Bank, and we’ve seen
excellent growth in our US mortgage credit
programme—with more than $20 billion of risk
transferred to re/insurers since its inception
five years ago. We are now extending this into
other areas of public and commercial credit.
Reinsurers are willing to provide capital
support in public-to-private infrastructure
projects, so we are working with our markets
and clients to continue to expand this
developing area of risk transfer. l
George deMenocal is president and chief executive
officer of Aon’s Reinsurance Solutions US business.
He can be contacted at: email@example.com
We have been
successful to date in
sheet, advising them not only on what forms
of capital may be best suited to their needs, but
also where they may want to consider investing
for the best returns.
In terms of perils, I think discussions will
focus significantly on flood, an area in which
we see great potential for transferring further
risk from the public sector to the private
markets. Our flood team is working hard with
our clients to develop growth strategies after
the announcement from FEMA to allow writeyour
own voluntary writers as of October 1,
2018 to offer and sell a competing voluntary
flood policy. We have been successful to date
in developing growth strategies in voluntary
flood and securing reinsurance capacity for
this line of business.
What about emerging areas of focus?
Clients are placing more emphasis on cyber, so
we have built out our teams and capabilities to
meet current and future demand.
The industry is gradually shaping its view