Insurance and reinsurance broker Aon is to launch a new centre which will be focused on weather and climate risk transfer innovation, as the company looks to help businesses and governments around the globe respond to the threats posed by our changing climate and weather risks more generally.
The company has set up the Aon Weather & Climate Risk Innovation network, through which it intends to help clients to meet the demands to evaluate the potential impact of climate risk and weather on their operations, and to design suitable comprehensive risk financing and transfer strategies to improve their resilience.
Aon will combine the knowledge and experience within its organisation along with advanced data, analytics and partnerships with other firms, to offer a dedicated center of excellence focused on weather and climate risk assessment, risk mitigation, and risk transfer.
There will be a focus on the quantification of risk, reducing the cost of capital for climate mitigation solutions which is where insurance-linked securities (ILS) and alternative reinsurance capital can play a key role, as well as closing the capital efficiency gap in infrastructure and for chronic weather risks.
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