As investment in data centres and other digital infrastructure assets continues to accelerate, global broking group Aon has launched its Digital Infrastructure Risk Aggregator (DIRA), designed to help insurers manage digital infrastructure risk and deploy capacity in this expanding market.
Aon says that DIRA helps carriers obtain a “clearer view” of exposures in the digital infrastructure world, and also identify accumulation risk, and make more informed underwriting, reinsurance, and capital deployment decisions.
DIRA brings together exposure analysis, market context, and Risk Capital expertise to help insurance clients move from individual asset reviews to a more consistent portfolio view. On either a quarterly or annual basis, DIRA aims to help insurers monitor changing exposures in their evolving portfolios and take advantage of market opportunities.
Dave Nicholson, Global Client Leader, Reinsurance, Aon, commented: “Digital infrastructure is creating meaningful opportunity for insurers, but profitable growth depends on the ability to understand exposure at a portfolio level and translate those insights into action.
“Our Digital Infrastructure Risk Aggregator helps clients identify concentration risk, benchmark their market position and shape underwriting, reinsurance and capital strategies with greater clarity and confidence. It is the latest example of how Aon’s investments in technology are helping to mobilize capital and make risk quantifiable, investible and transferable.”
The insurance and reinsurance broker explains that the new solution offers a structured approach to understanding data centre and wider digital infrastructure risk, which should benefit chief underwriting officers, exposure management teams, reinsurance buyers, and also catastrophe modelling teams.
As per Aon, DIRA helps insurer clients in the following key areas: Gain a more consistent view of exposure; Detect concentration and accumulation risk; Benchmark market position; and, inform capital deployment decisions.
“Our Digital Infrastructure Risk Aggregator tool demonstrates how Aon is helping insurers evaluate digital infrastructure risk with greater consistency and transparency,” said Dan Raizman, Global Head of Client Engagement, Climate Risk Advisory, Aon. “Combined with Aon’s Risk Analytics Platform, the solution gives clients location-level insights that can strengthen underwriting, portfolio management and reinsurance decision making.”
As an example of what the new solution can do, Aon reveals that DIRA can “highlight a single data-center campus carrying insured values above market benchmarks and show how that outlier affects accumulation, enabling insurers to consider actions such as facultative reinsurance or revised portfolio appetite.”
The solution is available to insurer clients seeking sample portfolio reviews or ongoing monitoring.
