Joy Agwunobi
Aon, a global insurance and reinsurance brokerage firm has broadened its partnership with Moody’s Insurance Solutions, extending their successful casualty reinsurance collaboration into the commercial risk segment. This strategic expansion reflects both companies’ commitment to addressing emerging challenges in the evolving casualty insurance landscape.
Initially focused on casualty reinsurance, the collaboration will now offer deeper insights into climate-related casualty exposures, emerging risk dynamics, and risk mitigation strategies, alongside the development of excess casualty named-peril products tailored for commercial insurance buyers. These new tools aim to empower casualty insurers and reinsurers to better manage risk, reduce loss latency, and improve their response to risk accumulation scenarios.
Amid growing concerns over social inflation, third-party litigation funding, and other systemic pressures creating volatility in liability exposures, the need for innovative risk transfer mechanisms has become more urgent. Aon and Moody’s believe that named-peril products—which specify coverage for distinct, predefined risks—can enhance efficiency in risk transfer, stimulate premium growth, and strengthen casualty coverage. Such approaches also help resolve long standing issues around exclusions, inadequate coverage limits, and frequent policy disputes.
The extended partnership merges Moody’s Casualty unit’s proprietary technology—which is capable of identifying and modeling over 300 unique emerging risk perils—with Aon’s vast network of relationships spanning both traditional reinsurance and alternative capital markets. This convergence is designed to streamline capital deployment and improve strategic decision-making for clients managing casualty portfolios.
Speaking on the enhanced collaboration, Amanda Lyons, Global Product Leader for Reinsurance Solutions at Aon, stated “Traditional casualty clash solutions have long fallen short in delivering capital-efficient coverage. Through our deepened collaboration with Moody’s, we are now creating bespoke products that more accurately reflect risk exposures while offering competitive pricing options for both commercial insurers and reinsurers. This not only enhances decision-making but also supports clients in confidently pursuing growth.”
Robert Reville, Head of Casualty Market Development at Moody’s, also emphasized the growing complexity of the liability landscape: “The increasingly volatile liability environment poses significant challenges across the insurance value chain—from original insureds to their carriers and reinsurers. In such an environment, we anticipate that named-peril solutions will catalyze the development of a dedicated casualty catastrophe market. We are proud to collaborate with Aon in leading this wave of innovation across the re/insurance sector.”
As the casualty insurance sector grapples with a broad spectrum of emerging risks, this strengthened alliance between Aon and Moody’s is poised to play a pivotal role in shaping more resilient, adaptive, and data-driven insurance solutions for the future.
