Aon plc, a provider of professional services, has introduced the Profitable Growth Tool, a new benchmarking and advisory service aimed at assisting insurers in identifying and cultivating key traits that enhance their value to customers and shareholders.
Developed by Aon’s Strategy and Technology Group, this tool builds upon the firm’s Growth Decision Framework and draws from an extensive analysis of over 100 global re/insurers.
It is designed to highlight the critical factors that contribute to consistent performance throughout fluctuating market cycles.
The Profitable Growth Tool enables insurers to evaluate themselves across seven essential performance categories, providing actionable insights that help guide them through market shifts and refine their strategies to achieve their business objectives.
Through this self-assessment, insurers can gain a clearer understanding of their standing and make informed decisions on how to strengthen their market position.
Insurers rate themselves on a scale from one to five across these key performance categories. Their scores are then benchmarked using Aon’s Maturity Path Model, which offers customised recommendations tailored to help them make more effective business decisions.
After completing the self-assessment, clients can meet with Aon’s experts to explore growth opportunities and challenges, working together to define clear, actionable steps toward sustainable growth and a competitive advantage.
The Profitable Growth Tool is based on seven common traits identified by Aon, which have consistently shown to contribute to success across various market conditions.
These traits include a clear understanding of risk appetite, which ensures that insurers can align their portfolios effectively; the speed and agility to quickly enter new markets, gaining first-mover advantages; and leveraging data and analytics to make well-informed decisions, while investing in next-generation technology.
Additionally, the tool emphasises the importance of innovative underwriting techniques, using automation and augmentation to enhance risk selection and decision-making.
It also highlights the need for top-tier talent in underwriting, claims, and actuarial fields, building a workforce united in achieving common goals. Effective distribution strategies are another key area, helping underwriters discover new opportunities and supporting brokers and clients through challenging renewals, all while setting clear expectations early on.
Lastly, the tool stresses the significance of flexible capital strategies that respond to shifting market conditions, ensuring that insurers can optimise their available sources of capital.
The introduction of the Profitable Growth Tool further demonstrates Aon’s commitment to helping insurers navigate an increasingly complex market environment, enabling them to identify areas for improvement and implement strategies that drive long-term, profitable growth.
Paul Campbell, global growth leader for the Strategy and Technology Group at Aon, commented: “As the industry contends with pressures from evolving risks ranging from extreme weather to geopolitical shifts, insurance leaders strive to preserve their hard-earned gains while achieving profitable growth. Cycle management strategies are a real differentiator in long-term performance and value realisation.
“We recognised that there was a huge difference between top performers and under performers so we created the Profitable Growth Tool to focus on the key traits of successful companies and help our clients move towards best-in-class performance and better solutions for policyholders.”
Rupert Moore, UK CEO of Reinsurance Solutions for Aon, added: “Our new Profitable Growth Tool is designed to provide insight that delivers real value to clients, benchmarking their capabilities and offering guidance on how to be a best-in-class insurer.
Through this consultative framework, we explore several important facets of effectively operating an insurance company from optimising capital to boosting talent in order to meet both customer and shareholder demands.”
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