Aon’s Case: Industry response to pandemic has “not been enough” in call for greater innovation

Covid-19 has transformed the corporate agenda by raising board awareness of long-tail and systemic risks but the onus is now on the insurance industry to collectively rise to the challenge of meeting its client needs, according to Aon CEO Greg Case.

In the first part of an exclusive interview with the newly launched The Insurer TV, Case said the pandemic has transformed the CEO agenda by sharpening their focus on risks such as the net pandemic, climate change and systemic cyber risks.

“The pandemic has flipped the CEO agenda in a way that is quite profound and long-lasting,” Case said.

“We talked about long-tail risks as being on the horizon for some time. They are now on the doorstep.”

Case said it was now critical the industry “invests more in innovation, content and insight and brings together partnerships that can help clients more effectively.”

“The real question is what role is the industry going to play? Is the industry going to set the agenda or will it be following on taking orders.”

Case said the industry’s response to the pandemic “has not been enough” with greater investments needed in innovation, content and insight if the sector is to meet its clients needs.

“The pandemic brought to the front and centre the absolute need from clients for a set of solutions that don’t currently exist,” he said.

“Some of our clients have advanced their strategies in months where it would have taken years before.

“Our clients have demonstrated that looking for a new normal is not good enough. We have rejected the idea of a new normal and coined the phrase new better - new better is how you innovate.”

He said the industry was “very short” on intellectual property solutions, even though IP now makes up roughly 85 percent of the market capitalisation of the world’s companies.

“Our industry – the collective we – have not done enough to bring solutions on their behalf,” he said.

He said challenges around climate change will remain front and centre when issues around the pandemic hopefully recede. 

“The question then is how do you reduce volatility as clients take action to address climate change,” he said.

“The agenda is there before us – the question is how do we as an industry invest in innovation to make this happen on their behalf.”

Click here to watch the second part of our interview.

During the first part of The Insurer TV’s exclusive beginning-of-the-year interview with the Aon CEO, we discuss the challenges posed by the pandemic and other long-tail risks, shifting client needs, the importance of greater innovation across the industry to meet these needs and more. Click the link below to watch the interview…