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Autumn 2014

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Aon Releases GRIP on Invaluable Risk Data

Ted Devine Steve McGill

Global broker Aon Risk Services (ARS) has continued to make progress with the rollout of its real-time global market intelligence system, with the project live in 16 territories at the end of May.

The Global Risk Insight Platform (GRIP) was launched at April's RIMS conference along with a 10-point client customer service commitment, known as the Aon Client Promise. It is the brainchild of Steve McGill, ARS chairman and CEO, and its president, Ted Devine.

Monitored centrally through Aon's Centre of Innovation and Analytics in Dublin, the latest tool in the battle for dominance of the global broking sector sees the Chicago-headquartered company deploying a real-time global technology platform. The ultimate aim is to capture and aggregate the market intelligence generated by the hundreds of thousands of deals it strikes and the $54bn in premiums that it distributes around worldwide insurance markets every year.

The rapidly delivered project - conceived as recently as August 2008 - measures key metrics such as limits, deductibles, pricing and exposure details by class and geography around the globe in real time and makes them available to ARS brokers and their clients, as well as insurance carriers.

By the end of May, GRIP had captured the data from over 100,000 trades and $14bn in premium. There is a target to implement 85 percent of business by premium volume by the end of June, with full take-up expected by the end of the year.

McGill explains that through engaging with Aon, insurance carriers will be able to drill down into the exact classes of business and territories they are interested in and see how they are performing relative to their peers, once again in real time.

Carriers partnering with Aon would be able to keep tabs on their hit ratios and other key indicators, and would also be able to use the platform to help find potential unplugged gaps in global client demand.

"The ability for us to share with the carriers what is happening and to be able to interact with them in multiple different ways and dimensions is going to help them have a strategic discussion with us about how they serve our clients that they won't be able to have with any other brokerage firm," McGill surmises.

Not just a mission statement
Explaining the rationale behind the global project, Devine says: "When we looked at what was available from a data perspective around trends in pricing and trends in limits and exposure that we and our competitors were using to assist our clients, there were pockets of real insight, but overall there was a lack of information allowing them to make their capital decisions."

"Strategically we have two great assets - one is our people and the other is the data," he surmised.

Turning to the benefit for clients, Devine believes GRIP will eventually "lay the foundation of our being able to allow our clients to better make capital decisions - i.e. where they should be buying, at what price and with what limits and retentions. And, as we add exposure data into the platform, it will better allow us to understand the pricing of risk - you can just imagine the power of that."

Reiterating that today's Aon is the product of over 440 acquisitions over 21 years, McGill sums up the unifying intention of the new technology platform: "The incredibly exciting thing about Aon and the journey we've been on is that we are now realising the potential of the firm in a way that maybe we could never have done five years ago," he explains.

According to the firm, the Aon Client Promise is a set of 10 differentiators identified by clients as key qualities desired in a broker and risk consultant. One of the principal rationales behind GRIP from a client-facing perspective is to help provide "proof points" so that the firm can demonstrate to customers that the client promises are "more than just a mission statement".

Aon's ten commandments: the client promise

   

1. A focus on optimising the clients' total cost of risk
2. A programme designed entirely around their needs
3. A dedicated team and a world of resources
4. Local access to the best markets in the world
5. Constant investment in new ideas and solutions
6. The strength of the world's leading broker on their side
7. Powerful benchmarking
8. Industry-leading service whenever clients need it
9. Client feedback drives our performance
10. Open and honest dialogue about the value Aon provides to a client

   

This article was published as part of issue Summer 2009

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