Insurance Risk Study

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The Insurance Risk Study, now in its 13th year, has evolved from its beginnings as a quantification study for enterprise risk management. We now take an expansive view of many issues related to risk, encompassing the growth dynamics, emerging risks, and operational challenges for insurers globally.

Analytics remains at the core of this report, and indeed in Aon’s offerings as a global professional services firm. In this regard, the Insurance Risk Study continues to provide the insurance industry’s leading set of risk parameters for modeling and benchmarking underwriting risk and global profitability. This volume includes critical metrics and parameters that insurers can use to advance their decision making in areas ranging from growth strategy to performance benchmarking, risk tolerance, and capital management. All parameters are produced using a consistent methodology that we have employed since the first edition.

The 13th Study begins with a review of the insurance industry’s performance globally: premium and capital levels, areas of growth, and profitability. Since the 8th edition, industry combined ratios are calculated across the top 50 countries. Beginning with Aon’s Country Opportunity Index on page five, we turn from numerical highlights to strategic considerations that identify the countries showing an attractive mix of growth and profitability with limited political risk. Page eight focuses on the risk parameters that can be used to model underwriting volatility and insurance capital.  Here are just a few of the key findings of this year’s report:

Using the study

Beyond risk modeling, we provide our clients with very granular, customized market intelligence to create business plans that are realistic, fact-based, and achievable. With access to global resources and capabilities, and a broad network of local market practitioners, we are equipped to provide insight across a spectrum of lines, products, and geographies. Inpoint, the consulting division of Aon, helps insurers and reinsurers address challenges, from sizing market opportunities to identifying distribution channel dynamics, assessing competitor behavior, and understanding what it takes to compete and win. Our approach leverages Aon’s USD350 million annual investment in analytics, data, and modeling to help our clients grow profitably. If you have any questions or suggestions for items we could explore in future editions of the Insurance Risk Study, please contact us through your local Aon broker or one of the contacts listed in the main document.

Global P&C business again produced an underwriting profit in 2017, with a combined ratio of 98.8% – slightly worse than last year’s 97.6% combined ratio.








Motor insurance is the fastest growing line of business, with 6.7% annual growth over the past five years, driven by strong growth in China, Brazil, Argentina, and Saudi Arabia.








For the third year in a row, Malaysia, Indonesia, and Singapore are ranked within the top five positions in Aon’s Country Opportunity Index. All three of these countries have shown low combined ratios, healthy premium and GDP growth, and a stable political environment.