Aon’s Catastrophe Risk Management Survey found that 48% of insurers do not license catastrophe models, and only 27% maintain dedicated model evaluation teams.
The results raise concerns over how well carriers can analyze risk and make informed underwriting and capital decisions.
The release comes alongside Aon’s 1H 2025 Global Catastrophe Recap, which reported the second-highest first-half global natural disaster insurance claims on record.
The findings underscore the value of robust modelling solutions for portfolio management, pricing, and catastrophe response.
More than 80% of respondents said analytics play a strategic role in risk management and reinsurance placement. However, nearly 60% operate with catastrophe risk teams of five or fewer staff, leaning heavily on reinsurance brokers for analytical expertise.
Aon noted this reliance shapes model evaluation, portfolio oversight, and rapid disaster response capabilities.
17% of participants stressed the importance of science-based models built on sound engineering principles, with 44% ranking methodology credibility as their top selection criterion.
Model adoption strategies varied by region: U.S. insurers favor faster rollouts and pay less attention to climate impacts, while UK and EMEA carriers prefer slower adoption and place more weight on climate factors. Vendor preferences also differ geographically.
Key operational concerns emerged:
- Data quality: 68% use measures to refine data, focusing on property details and location accuracy.
- Model transparency: Carriers cited mismatches between modeled losses and actual claims.
- Accumulation risk: Most depend on reinsurance brokers for tools to manage this exposure.
- Non-modeled loss: A top concern, yet only 20% adjust their risk view to include it.
- Climate impacts: 68% seek improved integration of climate change into risk assessments.
Katie Carter, head of View of Risk Advisory for Aon in the Americas, said insurers need a multi-model strategy that reflects current climate science and adapts to regional differences in risk perception. She added that tailoring strategies by geography can improve capital use and risk transfer outcomes.
