Management Consulting

Aon’s Rating Agency Advisory addresses the unique challenges faced by insurers in a rapidly evolving market characterized by rising interest rates, volatile equity markets, and increased catastrophe events. Insurers are under pressure from unrealized losses on their balance sheets, necessitating a deeper understanding of the metrics that influence their ratings. Aon provides tailored guidance to help these organizations optimize their capital and effectively communicate their profitability strategies to rating agencies. The advisory team at Aon leverages over 150 years of combined experience, including backgrounds in actuarial science, auditing, and finance, to assist clients in achieving their rating goals. They conduct more than 200 rating assignments annually, which allows them to stay abreast of changing criteria and emerging issues within the industry. Aon’s services include capital adequacy analysis using various models such as AM Best’s BCAR and S&P’s Capital, as well as benchmarking clients' rating positions against proprietary databases. One significant outcome of Aon’s advisory services is the identification of over $22 billion in rating agency capital adjustments for insurance clients, which includes more than $2.5 billion specifically for regional and mutual insurance clients in the U.S. risk-based capital model. This quantifiable benefit underscores Aon’s effectiveness in helping insurers navigate complex rating criteria and improve their capital positions, ultimately leading to enhanced ratings and financial stability.