Aon: Sophisticated risks can only be underinsured

Hamburg (ots) – Aon plc (NYSE: AON), a leading global consulting and services company, today released the German Market Report 2022. The report provides insight into a risk landscape that is becoming increasingly complex, dynamic and interconnected. Traditional insurance solutions no longer do justice to these new risks. Therefore, to maintain and expand corporate values, risks and resilience must be reprioritized.

Brexit, the coronavirus pandemic, natural disasters and the conflict in Ukraine: uncertainties that are difficult for companies to calculate have been steadily increasing for years. And they are getting more and more complex. Almost all risks lead to others. There are ripple effects, such as supply chain disruptions and an increase in cybercrime.

In many lines of business, insurers are reacting with higher premiums, lower coverage capacities and even excluding risks. Property and cyber insurance are particularly affected.

In property insurance, fires and weather-related catastrophes are the most important loss scenarios. In 2021, the claims expense ratio reached 177%, the highest level since the 2000s. The damage caused by storm “Bernd” in July 2021 has left its mark on the insurance and reinsurance market. This year’s drought with several wildfires shows that this trend is likely to continue. But not only has the frequency of claims increased considerably, but the costs of settling claims have also skyrocketed. Both the scarcity of raw materials and inflation make it more expensive to settle a single claim.

In addition to the property insurance market, the cyber market in particular is going strong at a rapid rate. “There are significant premium adjustments and numerous conditions,” explains Kai Büchter, CEO of Aon DA-CH. However, the approach of insurers is not uniform. Insurers, for example, have very different assessments of companies’ IT security requirements as a prerequisite for risk insurability. “This disparate approach by insurers makes it difficult for companies to gain an overview of the scope and content of their insurance portfolio. The need for meaningful information and insights to design better risk management decisions is constantly growing.” says Buchter.

“In future, the risks will have to be perceived more and more in their complexity,” Hartmuth Kremer-Jensen, brokerage director of DA-CH and deputy managing director of Aon in Germany, summarizes the results of the report. This is the only way to succeed in developing individual, intelligent security solutions for businesses in a volatile environment. “Because there is nothing more costly for customers than sticking with a supposedly cheap solution without knowing the real need,” says Kremer-Jensen. The Aon Market Report 2022 provides detailed information on all the line-specific facts and relationships at the insurance industry.

Press contact:

Aon Holding Deutschland GmbH Melanie Kellner Caffamacherreihe 16, 20355 Hamburg Tel: +49 40 3605 2280 [email protected]

Infographics and images in printable quality can be downloaded from www.aon.ecco-duesseldorf.de/bilder/.

Original content from: Aon Germany, broadcast by news aktuell

Newsroom of the press portal: news aktuell GmbH

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