1 day ago
3
Aon has announced a renewal and an expansion of its long-standing Client Treaty facility for the London and Lloyd’s market, which will now offer 28.5% of co-insurance capacity for qualifying placements.
The Aon Client Treaty is one of the way’s Aon has blurred the lines between broking and underwriting side of the insurance and reinsurance market.
The facility, which Aon calls its signature London Market placement facility, will now expand to co-insure 28.5% of business placed by Aon’s Global Broking Centre using Lloyd’s sourced capacity, representing a record increase as it enters its tenth year.
The follow-on facility is designed to help clients “respond to complexity with new sources of capital” Aon explained and for 2025 it has also added a three-year letter of intent from market partners and a new feature, the ACT Client Dividend.
It’s the largest capacity increase for Aon’s Client Treaty, up from 22.5% in 2024 and 20% back in 2022, with now over $3.5bn in gross written premium has been placed through ACT since 2016.
Three new market partners have joined for 2025, Aon explained, while all existing partners have renewed their participation and QBE remains the lead.
All of the participating markets have signed the new three-year letter of intent, guaranteeing capacity availability and providing more certainty for clients.
Aon has also introduced the ACT Client Dividend in 2025, which is a 1.5% reduction applied to the portion of the premium placed through ACT.
That elevates the efficiency of the risk capital for cedents, while also making ACT even more attractive to use and acting as another driver to tap the facility.
Joe Peiser, CEO of Commercial Risk for Aon, commented, “The renewal and record expansion of Aon Client Treaty, now in its tenth year, reflects the value it delivers for both clients and participating market partners. As the complexity and size of the risk landscape increases, it is essential that our clients access the insurance capacity they need with speed and certainty.”
Tracy-Lee Kus, CEO of Aon’s Global Broking Centre, added, “Innovation is essential to allow clients to access risk capital more efficiently and Aon’s significant investment in managing data and information has been a key factor in the growth and sustainability of ACT. We will continue to invest and scale this revolutionary approach to securing risk capital on behalf of our clients.
“The support of market partners, now further strengthened through a three-year letter of intent, is essential to the success of ACT; we are pleased to welcome three new participants and will continue to work closely with our partners to ensure ACT remains a solution that meets the needs of our clients.”
Client Treaty is an example of how Aon works to source and channel capacity to clients in a semi-automated fashion, to enhance the efficiency of risk capital and deliver capital to qualifying risks at the right time.
Of course, it’s also an example of how Aon can maximise its stature in the marketplace, with this source of capacity potentially providing addictive for clients that tap into it, which can sustain, strengthen and lengthen client relationships for the broker.
Also read: Aon blurring lines. Case points to Marilla & Client Treaty as growth drivers.
English (US) ·