Global insurance and reinsurance broker Aon has announced the successful renewal and expansion of Aon Client Treaty (ACT), the firm’s flagship London Market placement facility.
According to the announcement, in 2024, ACT will offer 22.5% co-insurance across core lines of business placed through Aon’s Global Broking Centre (GBC) in London. This will give clients guaranteed, pre-secured and ring-fenced aggregate capacity.
In 2023, ACT has placed over $600m in GWP across more than 2,500 clients and this is expected to grow next year.
Additionally, ACT will increase the maximum line size across the majority of its classes to 22.5% from 20%.
It will also boost US property catastrophe aggregate and this, alongside an expansion to the approved leads ACT is permitted to follow, will enable it to represent a fuller indexation of risks placed in the London Market, the firm stated.
Joe Peiser, CEO of Commercial Risk Solutions, commented: “We are extremely pleased to announce the renewal and expansion of ACT. Aon’s 2023 Global Risk Management Survey showed that the risks our clients face are becoming ever more complex and volatile. ACT is a critical tool in helping our clients navigate this landscape, offering certainty of coverage, speed of placement and more efficient access to insurance capital.
For next year, all ACT’s existing carriers have renewed their participation with QBE continuing as the lead. Two new carriers have also come on board, Aon noted.
Peiser added: “We are also delighted with the continued strong support from our existing and new carrier participants. ACT is now well established as a core differentiator for Aon as we continue to respond to client need and, while the rating environment has changed significantly since we launched ACT in 2015, the consistent demand we have seen throughout the market cycle is a powerful demonstration of its value to both clients and insurers.”
