Aon has announced a renewal and an expansion of its long-standing Client Treaty facility for the London and Lloyd’s market, which is able to now offer 28.5% of co-insurance capability for qualifying placements.
The Aon Client Treaty is one among the way in which’s Aon has blurred the lines between broking and underwriting side of the insurance and reinsurance market.
The power, which Aon calls its signature London Market placement facility, will now expand to co-insure 28.5% of business placed by Aon’s Global Broking Centre using Lloyd’s sourced capability, representing a record increase because it enters its tenth yr.
The follow-on facility is designed to assist clients “reply to complexity with recent sources of capital” Aon explained and for 2025 it has also added a three-year letter of intent from market partners and a recent feature, the ACT Client Dividend.
It’s the biggest capability increase for Aon’s Client Treaty, up from 22.5% in 2024 and 20% back in 2022, with now over $3.5bn in gross written premium has been placed through ACT since 2016.
Three recent market partners have joined for 2025, Aon explained, while all existing partners have renewed their participation and QBE stays the lead.
The entire participating markets have signed the brand new three-year letter of intent, guaranteeing capability availability and providing more certainty for clients.
Aon has also introduced the ACT Client Dividend in 2025, which is a 1.5% reduction applied to the portion of the premium placed through ACT.
That elevates the efficiency of the danger capital for cedents, while also making ACT much more attractive to make use of and acting as one other driver to tap the ability.
Joe Peiser, CEO of Business Risk for Aon, commented, “The renewal and record expansion of Aon Client Treaty, now in its tenth yr, reflects the worth it delivers for each clients and participating market partners. Because the complexity and size of the danger landscape increases, it is crucial that our clients access the insurance capability they need with speed and certainty.”
Tracy-Lee Kus, CEO of Aon’s Global Broking Centre, added, “Innovation is crucial to permit clients to access risk capital more efficiently and Aon’s significant investment in managing data and knowledge has been a key think about the expansion and sustainability of ACT. We are going to proceed to speculate and scale this revolutionary approach to securing risk capital on behalf of our clients.
“The support of market partners, now further strengthened through a three-year letter of intent, is crucial to the success of ACT; we’re pleased to welcome three recent participants and can proceed to work closely with our partners to make sure ACT stays an answer that meets the needs of our clients.”
Client Treaty is an example of how Aon works to source and channel capability to clients in a semi-automated fashion, to reinforce the efficiency of risk capital and deliver capital to qualifying risks at the correct time.
In fact, it’s also an example of how Aon can maximise its stature within the marketplace, with this source of capability potentially providing addictive for clients that tap into it, which may sustain, strengthen and lengthen client relationships for the broker.
Also read: Aon blurring lines. Case points to Marilla & Client Treaty as growth drivers.