Latest news with #ClimateandCatastropheInsight
Techday NZ
4 days ago
- Business
- Techday NZ
Aon highlights global megatrends shaping business risks in 2025
Aon has released its Client Trends 2025 report identifying four interconnected megatrends—Trade, Technology, Weather and Workforce—that are shaping the challenges faced by businesses and society. The report examines how these trends combine to create complexity, volatility and uncertainty for organisations operating in New Zealand and globally. Melissa Cantell, Chief Executive Officer of New Zealand at Aon, highlighted the increasing recognition among local businesses of the interconnected nature of these challenges. Cantell stated, "We're seeing more New Zealand businesses recognise that these challenges aren't happening in isolation, they're all connected. Not only does this make decision-making tougher, but it also makes it more important than ever." She further explained the opportunities available to leaders who are prepared to consider the broader context of these challenges. "The good news is, when leaders take a step back and look at the bigger picture, there's real opportunity. With the right insights and support, they can move with more confidence, adapt faster and turn uncertainty into action," Cantell said. Aon's analysis draws from its expertise in risk capital and human capital to provide perspectives on where the megatrends of Trade, Technology, Weather, and Workforce intersect and how this intersection influences decision-making within organisations. The intersection of Trade and Technology is driving significant innovation in global supply chains, according to the report. These advancements are delivering efficiencies but also introducing new risks. Artificial intelligence (AI) is a core enabler, supporting businesses to navigate increasingly complex regulatory environments, new trade laws, evolving privacy regulations, as well as threats from cyber-attacks and the potential for global trade wars. The report details a shift in the relationship between Technology and Workforce, driven primarily by AI adoption within human resources functions. Organisations are deploying AI to enhance processes in talent acquisition and employee engagement. This trend is not only bringing greater efficiency but also placing an emphasis on upskilling employees to work collaboratively with AI systems. The report notes that for companies seeking to benefit from this transformation, adapting the workforce to incorporate technical skills and maintaining human oversight are crucial to fostering effective decision-making and encouraging innovation. Weather and Workforce is another intersection highlighted by Aon, with extreme weather events reported as becoming more frequent and resulting in higher costs. Findings from Aon's 2025 Climate and Catastrophe Insight report are referenced, stating that global economic losses in 2024 reached approximately NZD$622 billion. Employers, concerned with employee wellbeing, retention and productivity, are facing challenges as weather events impact not only the physical health of employees but also their emotional and financial security. The link between Weather and Trade is also flagged as a growing area of risk. The report notes that climate volatility has a significant impact on global trade, stressing the interconnectedness of international supply chains and exposing the potential financial risks associated with extreme weather events. Organisations are responding by embedding climate risk assessments into their strategic planning processes and creating more diversified supply chains. Aon reports that by anticipating and understanding the likely effect of weather disruptions, companies are improving their ability to maintain resilient trade operations in uncertain conditions.
The Sun
14-05-2025
- Business
- The Sun
Wildfires and Floods Caused Billion-Dollar Economic Loss in Asia Pacific in the first quarter of 2025: Aon Report
• Q1 data follows $74B economic loss in Asia Pacific from natural disasters in 2024 • Earthquake in Myanmar estimated to be the costliest event of the year so far, with only a fraction insured SINGAPORE - Media OutReach Newswire - 14 May 2025 - Aon plc (NYSE: AON), a leading global professional services firm, published Asia Pacific (APAC) insights from its Q1 Global Catastrophe Recap – April 2025, which analyzes the natural disaster events that occurred worldwide during the first quarter of 2025. During this period, the APAC region experienced significant wildfire activity, particularly in South Korea and Japan. South Korea faced devastating wildfires that resulted in 31 deaths, 49 injuries and the destruction of over 7,700 structures with losses estimated at approximately $1B. The earthquake that occurred in March in Myanmar is the costliest event of the year so far. Damage is expected to reach billions of dollars and only a fraction is covered by insurance. The costliest event for APAC insurers was ex-Tropical Cyclone Alfred, with insured losses of approximately AU $1B. The Q1 data follows Aon's 2025 Climate and Catastrophe Insight report, which identified global natural disaster and climate trends to quantify the risk and human impact of extreme weather events in 2024, where total economic losses in APAC were $74B, with insurance covering only approximately $4B. The main driver of economic losses in 2024 was flooding, with a significant contribution from seasonal floods in China. Two major events: the Noto earthquake in Japan and Typhoon Yagi in Southeast Asia and China also accounted for a large proportion of the losses. Typhoon Yagi was one of the most severe storms to hit Southeast Asia since Typhoon Rammasun in 2014. The storm caused extensive damage across Vietnam, China, Myanmar, the Philippines and Thailand, resulting in significant economic and insured losses. This event highlights the importance of considering both wind and flood risks in typhoon-prone areas. George Attard, CEO for Reinsurance Solutions for APAC at Aon, said: 'The devastating earthquake in Myanmar, which caused at least 5,400 deaths and significant structural and infrastructure loss, underscores the importance of being prepared for catastrophe-related risks. Extreme weather and seismic events remain a powerful force driving the complexity and volatility that businesses and communities face and emphasizes the urgent need for innovative mitigation solutions to address this growing challenge.' Aon's 2025 Climate and Catastrophe Insight report highlights several trends with natural catastrophe losses: • Growing Disaster Losses: Global insurance losses in 2024 were 54 percent above the 21st-century average, covering $145B of the $368B in damages. Even though insured losses far exceeded the average, the protection gap stood at 60 percent, representing a significant financial headwind to communities, businesses and governments. In the APAC region, the protection gap was much higher with 95 percent of the losses not covered. Increases in population density in coastal areas, wealth and overall exposure to natural hazards in high-risk areas continue to be a crucial component of growing disaster losses. • Earthquake Risks: April 2024 saw a significant earthquake impact in Taiwan, while Japan experienced the Noto Peninsula earthquake on January 1, 2024. This emphasises the need for ongoing vigilance and preparedness for seismic events. • Exposure Changes: Changes in exposure is a growing challenge for insurers and clients. These changes, rather than climate risks alone, are driving shifts in loss patterns. Typhoon Yagi, for example, accentuated the importance of a regional risk management approach that extends beyond sovereign borders. • Advances in Flood Modelling: Despite the challenges, advancements in flood modelling have made significant strides in recent years. Advanced tools and data analytics can help businesses and governments understand the complexities of flood risk and prepare for future events. • Economic Impacts: The exposure of commercial infrastructure to extreme weather has increased, requiring companies and insurers to explore the impact of changing weather patterns on assets. While Typhoon Yagi made a significant impact on economic and insured losses in China, Vietnam and the Philippines, 2024 was a relatively quiet year for natural catastrophes in Asia when compared with the long-term regional trend. The economic and insured losses in the region also contrast with the global figures, where economic losses from natural disasters in 2024 are estimated at $368B, more than 10 percent above the long-term average since 2000. With greater resilience and mitigation measures in place, global economies can reduce damage and loss of life. In 2024, 18,100 people lost their lives due to natural hazards, mostly from heatwaves and flooding globally. This was below the 21st-century average of 72,400. The long-term decrease in global fatalities can be attributed to improved warning systems, weather forecasts and evacuation planning, underscoring the value of reliable climate data, insights and analytics. 'Asia is at the forefront of flood modelling,' said Peter Cheesman, head of Risk Capital analytics for APAC at Aon. 'Despite this, there remains a need for better tools and collaborations with public and private partnerships to help close the insurance gap. A comprehensive, multi-country strategy, together with advanced modelling and data inputs, are critical in helping risk managers prepare for future events as climate and exposure trends continue to evolve.' Aon's 2025 Climate and Catastrophe Insight report can be found here. Hashtag: #Aon #climaterisks #climate #catastrophe #catastropherisks #flooding The issuer is solely responsible for the content of this announcement.
Cision Canada
01-05-2025
- Business
- Cision Canada
Four Interconnected Megatrends Are Driving Global Uncertainty For Business and Society: Aon Report
DUBLIN, May 1, 2025 /CNW/ -- Aon plc (NYSE: AON), a leading global professional services firm, today released its Client Trends 2025 report, which features new insights about the interconnectedness of four megatrends – Trade, Technology, Weather and Workforce – driving complexity, volatility and uncertainty for business and society. "The megatrends of Trade, Technology, Weather and Workforce are creating unprecedented challenges for business leaders, who risk decision paralysis when urgent action is needed," said Greg Case, president and CEO of Aon. "The interconnectedness of these trends means that leaders need access to integrated data and analytics, capabilities and expertise to effectively respond to increasingly linked risk and people issues." Aon's Client Trends 2025 report draws on the firm's Risk Capital and Human Capital expertise to offer a fresh perspective on how these trends intersect and impact decision making. The analysis looks at specific connection points between the trends, including with: Trade and Technology: The intersection of Technology and Trade are fuelling innovation that will deliver much-needed efficiencies in global supply chains. However, with new technology comes significant risks that must be properly managed. Artificial intelligence (AI) plays a vital role in helping move global trade through increasingly complex regulatory challenges, trade laws, privacy regulations and threats from cyber attacks and potential global trade wars. Technology and Workforce: The integration of AI within human resources functions is reshaping job roles and skill requirements across industries. Organizations are increasingly utilizing AI to optimize processes like talent acquisition and employee engagement. This shift not only enhances efficiency but focuses on upskilling employees to work alongside AI. As companies work to capitalize upon this transformation, are evolving their workforce with the necessary technical and maintaining critical human oversight to drive innovation and effective decision-making. Weather and Workforce: Extreme weather events are becoming more frequent and costly. According to Aon's 2025 Climate and Catastrophe Insight report, global economic losses in 2024 amounted to $368 billion. At the same time, employers are more concerned than ever about employee wellbeing, retention and productivity. Employees who work outside face health risks from heatwaves, air quality implications from wildfires and more. Not only can weather events affect employee's physical health, their emotional and financial wellbeing may also be at risk. Weather and Trade: The effects of climate volatility on global trade is another growing risk. This was starkly illustrated by the severe flooding in Spain and its impact on the automotive industry in 2024. Flooding disrupted production and logistics, highlighting the interconnectedness of supply chains and the financial risks posed by extreme weather events. In response, clients are integrating climate risk assessments into their strategic planning and developing diversified supply chains. By understanding and anticipating the impacts of weather-related disruptions, organizations are enhancing their resilience and protecting their trade operations in an increasingly unpredictable environment. About Aon Aon plc (NYSE: AON) exists to shape decisions for the better — to protect and enrich the lives of people around the world. Through actionable analytic insight, globally integrated Risk Capital and Human Capital expertise, and locally relevant solutions, our colleagues provide clients in over 120 countries with the clarity and confidence to make better risk and people decisions that protect and grow their businesses. Media Contact [email protected] Toll-free (U.S., Canada and Puerto Rico): +1 833 751 8114 International: +1 312 381 3024 SOURCE Aon plc
Khaleej Times
27-01-2025
- Business
- Khaleej Times
UAE rains: Majority of insurance firms have paid out claims of record April 2024 rainfall
The majority of the insurance companies have paid out claims in the wake of the record April 16 rains seen last year. 'Insurance firms had a huge number of claims requests that were registered. After the record April 16 rains, within 3 months, the majority of claims were evaluated and successfully paid out. Some were declined because there were people who tried to take advantage of the situation. I would say the majority of the claims have been paid out where insurance companies thought it was right for them to pay,' said Toshita Chauhan, business head at 'For us, we don't have any claim files opened for that period. Also, the central bank has opened a complaint registry for the consumers. If they felt they were not being treated fairly, they may file a complaint,' she said. According to global ratings agency S&P, UAE insurers lost up to $2.5 billion (Dh9.175 billion) due to rains in 2024, including the unprecedented rainfall in April which was the heaviest in 75 years. The rains caused massive losses to properties and vehicles in Dubai, Sharjah and other northern emirates. 'Th overall ecosystem helped and customers were extremely understanding and patient as garages were full. The worst is over. The impact is now on premiums. When customers get their renewal premiums, although there may be no claim customers, they may be paying more than last year because the overall risk has been accounted for,' Chauhan told Khaleej Times in an interview. According to global professional services firm Aon, UAE was ranked among the top four countries which listed costliest insurance events last year. 'Flooding was the dominant peril in Europe, the Middle East and Africa (EMEA) and all its sub-regions, being responsible for more than $35 billion in losses. This was driven by events in Spain, Central Europe, Germany, UAE and elsewhere,' Aon said in its Climate and Catastrophe Insight report. Inquiries on the rise Policybazaar said it has also recorded a 75 per cent rise in inquiries related to health insurance in the wake of the rollout of mandatory health insurance in the northern emirates from January 1, 2025. She attributed the increase in inquiries to multiple reasons including changes in regulations and new pricing of health insurance policies in Dubai. 'Customer behaviour changes whenever there is a deadline or fine associated with anything, and UAE manages it very well operationally. It gives you ample time and a date when rules will come into effect,' she added. Enhanced coverage In addition, Policybazaar launched PB Advantage, transforming how health insurance is sold, purchased, and claimed in the UAE. The program provides customers with 30-minute claims assistance from a dedicated insurer-claims desk. It automatically restores the sum insured after the first claim, providing extra coverage equal to the original amount. For example, if an initial coverage is Dh1 million that is used for surgery, the Auto Recharge will add another Dh1 million for any future claims related to a different illness or condition. PB Advantage also enhances the coverage through a no-claim bonus, by adding a 10 per cent sum assured each year for every in-patient claim-free year, up to a maximum of 5 years. 'PB Advantage was created in response to the challenges we often hear from customers. We wanted to address these pain points head-on with a programme that simplifies and enhances the health insurance journey. "An important pain point is also getting quicker turnarounds in terms of premium rates for those with pre-existing conditions. With PB Advantage we want to assure such customers that within 60 minute of them raising a query, they will have an accurate quote from the leading insurers in UAE,' said Toshita Chauhan.
