Evolving risks demand bold solutions

“Relationships, products, expertise and capacity all need to be well aligned,” says Jeremy Goodman, global growth leader and head of global broking for reinsurance solutions at Aon, talking to Monte Carlo Today about how the industry must adapt to remain relevant. 

According to Goodman, the key lies in aligning expertise, capacity and data to create innovative solutions that address evolving risks head-on.

“It’s incumbent upon our industry to solve the evolving risks that exist in the world today,” Goodman remarked, emphasising the need for anticipation rather than mere response.

He highlighted Aon’s dual approach, which combines understanding client needs with advanced analytics to stay ahead of the curve. 

“We’re constantly evaluating the risk landscape and applying our actionable analytics to support bold decision-making,” he explained.

Goodman cited Aon’s $350 million insurance programme to accelerate new capital investments and economic recovery in Ukraine as an example of how the industry can lead by innovation.

“We’re focused on helping clients and the industry develop solutions that support society and our economy as a whole,” he said. 

“Clarity is vital for fostering innovation and driving economic growth.” 

Uncertainty can be a positive 

This approach is vital, as geopolitical tensions and unforeseen risks can disrupt markets and economies on a global scale.

For Goodman, the industry’s success depends on three elements in alignment: products, expertise and capacity.

“Clarity is vital for fostering innovation and driving economic growth. If we can’t develop those specific products and solutions to match the evolving risks of society, our industry won’t remain relevant,” he warned.

The challenges facing the reinsurance industry are multifaceted, but Goodman identified uncertainty as a particularly pressing issue.

Citing Aon’s 2023 Global Risk Management Survey, he noted that doing business has become increasingly more challenging, with heightened geopolitical tensions creating both risks and opportunities.

Top risks, such as cyber attacks and data breaches, have dominated Aon’s surveys, and Goodman sees a “massive opportunity for our industry to help clients understand those risks, and lean in to support the transfer and mitigation of those risks”.

However, the industry’s ability to seize this opportunity depends on its willingness to evolve.

Goodman stressed that without the right products and solutions, clients might seek alternatives outside the traditional reinsurance market, potentially stifling broader economic growth. 

“If we don’t develop new solutions, those risks will remain with our clients, and they’ll figure out how to manage themselves, but it could repress wider economic growth,” he warned. 

Balancing clients and capital

The competitive landscape is shifting, placing more pressure on reinsurers to differentiate themselves—not just on price but on service and value proposition.

“Our clients are considering which firms they want to have on their panels, and they’re in a stronger position today to evaluate who they want as their partners,” Goodman observed.

This shift highlights the importance of strong partnerships.

“The value of relationships is increasingly recognised in the industry,” he noted, emphasising that they are built through personal interaction.

Aon is playing an active role in facilitating such relationships and supporting reinsurers in meeting client needs.

“We’re using our extensive database and the relationships we have with those reinsurers to help provide them insights into our clients’ needs and how best to meet those needs,” Goodman explained.

This approach ensures that reinsurers can align their capital with client needs, fostering profitable growth. 

Aon’s committed investments in data and analytics are central to this strategy, providing the foundation for more informed and strategic decision-making.

Yet Goodman did acknowledge that the industry faced significant challenges, particularly around data.

“The industry has huge amounts of data, and we don’t necessarily share it as widely as we could with stakeholders,” he remarked.

This reluctance to share data is a barrier to progress, as broader data-sharing could lead to better risk understanding and management. 

To overcome this, Goodman advocates a continued investment in data and analytical capabilities coupled with a more open exchange of information among industry stakeholders.

Another significant issue is the high cost of operating in the reinsurance sector.

“As an industry, we need to find ways to reduce the cost of doing business,” Goodman argued.

By leveraging technology and digital platforms to capture and exchange data more efficiently, the industry can pass on the benefits to clients in the form of improved value propositions.

Aon Business Services powers its operational and technological capabilities to deliver better outcomes for clients, colleagues, and trading partners.

Goodman concluded by reaffirming Aon’s commitment to helping clients grow sustainably and profitably.

“Aon is in the business of better decisions,” he stated, highlighting the firm’s capital advisory and strategy and technology groups as key enablers of client growth.

Jeremy Goodman is global growth leader and head of global broking for reinsurance solutions at Aon. He can be contacted at: jeremy.goodman@aon.com 

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