Aon plc, a global professional services firm, has launched two new diagnostic tools designed to help organizations assess exposure, prioritize risk management actions and support insurance decisions.
The Property Risk Diagnostic and Casualty Risk Diagnostic address separate areas of corporate risk management. Both use structured data and analysis instead of subjective ratings and static reports, giving risk and finance teams a more consistent basis for investment and insurance decisions.
Risk and finance executives face growing pressure to show how exposures are managed and where spending produces measurable returns. For property risks, this involves identifying the locations and hazards responsible for expected losses and determining which mitigation measures warrant investment. On the casualty side, higher claims costs, regulatory changes and margin pressure have pushed total cost of risk, or TCOR, further up the corporate agenda.
“Clients are asking a sharper question than a few years ago: not just what their risk is, but what to do about it and what it is worth,” said Christian Hoffman, CEO of Commercial Risk at Aon.
Hoffman said the two diagnostics address different problems but share the same objective: providing risk and finance executives with evidence they can use when deciding where to act and invest.
Aon’s Property Risk Diagnostic is delivered by risk engineers from Aon Global Risk Consulting. The tool combines modeled and historical loss estimates across natural catastrophe exposures and day-to-day property risks, taking account of risk improvements already in place.
Clients receive a consistent view across sites and hazards, allowing them to compare exposures and assess alternative mitigation measures. The analysis is also designed to support the financial case for spending on property risk reduction.
The diagnostic combines catastrophe and non-catastrophe loss estimates adjusted for observed mitigation measures. Users are able to compare different risk reduction options side by side, assess their effect on expected losses and examine potential payback.
It also identifies the locations and perils contributing most to expected loss and volatility. Aon consultants then use the results to develop a practical risk improvement plan, which is intended to be refreshed over time and used during insurance renewal discussions.
The Casualty Risk Diagnostic focuses on claims data and TCOR. It analyzes client information across auto liability, general liability and workers’ compensation alongside Aon’s proprietary benchmarking database.
The service provides interactive, self-service analysis every quarter. Clients are able to identify the loss drivers affecting TCOR, compare performance with anonymized peer groups and track results against their own cost and performance targets.
Aon’s proprietary benchmarks are matched to peer sets based on the client’s organizational structure. The diagnostic also includes a savings calculator intended to measure the return from targeted mitigation measures and a performance tracker for monitoring progress against strategic objectives.
A custom findings summary brings the analysis together for Aon consultants, who use it to develop mitigation recommendations and support decisions on risk transfer and retention. The Casualty Risk Diagnostic is initially available to clients in North America, with wider international availability planned for 2027.
“Analytics only create value when they inform what a client does next,” said Richard Waterer, Global Risk Consulting Leader at Aon.
Waterer said both tools were developed around a consulting-led model, with engineers and consultants working alongside the data to interpret findings, set priorities and measure changes over time.
