Aon’s Reinsurance Solutions business has announced the launch of its Public Private Enterprise (PPE) specialty practice, a move intended to address the global reinsurance protection gap by providing advice and solutions to entities, including governments.
The PPE practice will be initially based in London with a focus on terrorism and natural hazard risk and is to be led by Emma Karhan, working alongside Jon Wood. In addition to working closely with Aon Securities the practice is expected to integrate with Aon’s Credit & Guarantee and Government practice in the U.S.
The company says the PPE team will build on its successful models of government de-risking through commercial plan structures, which have transferred more than $20 billion of risk to the re/insurance market – and a $1 billion risk transfer solution for the U.S Exim Bank.
The new practice will work with a range of Aon teams, including Impact Forecasting’s catastrophe modelling developers, to identify opportunities to develop coverages, and engage with the industry to build post-loss resilience within economies.
“The re/insurance industry has record levels of capital at a time when public entities need increased protection against the risks they face,” said Nick Frankland, UK Chief Executive Officer of Aon’s Reinsurance Solutions business.
“In particular, there is great potential to make the most of this capital through parametric triggers. Aon has proven its ability to structure ground-breaking solutions on behalf of governmental, and quasi-governmental organisations, and we now intend to build on these successes to assist ultimately in the development of more robust economies across the world.”
