Aon's new framework to enhance insurer profitability

It focuses on uniting capital and portfolio strategies ahead of January 2025.

Aon has introduced its Growth Decision Framework, a new consulting service aimed at helping insurers improve performance and enhance resilience in market cycles. 

The service, developed by Aon’s Strategy and Technology Group, focuses on uniting capital and portfolio strategies ahead of the January 2025 renewal season. 

The framework is designed to drive profitable growth tailored to each insurer’s risk appetite and strategic goals.

Based on a proprietary study of more than 100 global (re)insurers, Aon has identified traits that enable firms to outperform consistently through market cycles. 

These traits include risk appetite, agility, data and analytics capabilities, underwriting practices, talent management, distribution strategies, and capital efficiency. The Growth Decision Framework leverages these insights to help insurers optimise their decision-making processes.

The framework evaluates key metrics such as expected profitability, underwriting volatility, capital requirements, and risk-adjusted returns. 

By doing so, insurers can prioritise market segments, access benchmarks, assess distribution channels, and identify competitive strengths and weaknesses. Additionally, the framework provides guidance on investment strategies, workforce development, and technology initiatives.