Risk Capital and Human Capital Perspectives

Risk Capital CEO Andy Marcell and Human Capital CEO Lambros Lambrou discuss how innovations in Risk Capital and Human Capital can help organizations boost resilience and navigate volatility.

Q

How do you see Risk Capital and Human Capital accelerating solutions for clients in the face of the four megatrends of Trade, Technology, Weather and Workforce?

Andy Marcell:

Risk Capital brings the breadth of its expertise, relationships and analytics to unlock capital for clients regardless of market or geography. When it comes to accelerating solutions, we see an opportunity for Aon to expand its modeling and analytics capabilities linked to natural catastrophes, bringing actionable insights as organizations navigate volatility and build climate resilience. To accelerate this, Aon is deploying more than 1,000 analytics professionals to ensure our clients are better informed about the risk exposures they face.

We also see an opportunity to create new pathways to alternative sources of capital, maximizing capacity and terms and conditions for our global client placements. We can bring in additional sources of capital from areas like pension funds and sovereign wealth to create more capital options for our global clients.

In terms of client solutions and need, there is a clear desire to raise understanding of the protection gap, with only 31 percent of losses from natural catastrophes insured in 2023. Organizations need to ensure they are adequately covered, as Aon works closely with insurers to identify opportunities to enter new markets.

Lambros Lambrou:

On the Human Capital side, the power of our connected health, wealth and talent expertise creates additional value in three primary ways: actionable people analytics, newly connected people solutions and linking risk capital and human capital. I’ll give a couple examples.

We recently used workforce analytics from our proprietary databases to proactively work with several large multinational organizations with a large and younger female population. In our conversations, we discussed how improving access to fertility benefits and enhancing family leave and caregiving policies could create massive competitive advantages and improve long-term retention rates.

In another example, our Human Capital team partnered with healthcare systems and client companies in Europe, where national healthcare systems are struggling to keep up with rising demand for services as a result of shifting demographics and inadequate staffing levels. Our connected approach allowed us to rethink their talent strategies and fill coverage gaps through expanded use of voluntary benefits, like private health insurance.

Next Chapter

Trade Image — 2024 Client Trends Report

Trade

Read Next

Talent is increasingly showing up when we think about risk.

Q

How are clients addressing these megatrends through a Risk Capital and Human Capital lens that may not have been apparent just a few years ago?

Andy Marcell:

Clients recognize that risk and human issues are intrinsically linked and that solutions to some of the biggest challenges we see today require a holistic approach. Talent is increasingly showing up when we think about risk. In fact, the failure to attract and retain top talent ranked number four in Aon’s latest Global Risk Management Survey, the highest ranking since we launched the survey. So, it is very apparent that C-suite decision-making will need to be informed by both risk and human analytics, as leaders look to protect their people and grow their business.

Lambros Lambrou:

Seeing attracting and retaining talent rise to the number four global risk companies face was very telling in how thinking has evolved on traditional risk topics. We are actively addressing people risks with our clients — whether it’s using talent assessments to identify employee groups with elevated cyber risk, using captives to reduce pension and benefit-related exposures or deploying parametrics to create resilience bonds that protect employees from natural disasters.