Climate Impact on the Property and Casualty Market

02/04/25 • 11 min

Record-breaking losses are reshaping the property and casualty market, but analytics can help companies better understand and price risk. This On Aon podcast episode examines climate losses, the effects of court cases, and how analytics can help businesses make better decisions.

Experts in this episode:

Joe Peiser, Global CEO of Aon Commercial Risk

Steve Hackenburg, Property and Casualty Leader, Commercial Risk North America

Paul Shedden, Global Head of Risk Capital Analytics

Key Moments:

[2:14] Climate as driver of significant loss activity

[2:44] Effects of tort activity on casualty losses

[5:00] Setting temperature records each year

[7:58] Favorable insurer results and what that means for companies

[9:29] Investing in digital and analytical capability

Additional Resources:

Climate and Catastrophe Insight

Soundbytes:

“Activities such as severe convective storms and wildfires traditionally have been viewed by the underwriting community as secondary perils, but given the frequency and severity of these events, they are now really being viewed as more primary perils by the underwriting community.” — Steve Hackenburg

“What's been less widely reported is that, in fact, every single one of the past 10 years has hit a new record, not consecutively, but each one of those in its own has hit a new record for warmest temperature as set by the World Meteorological Organization. So climate change is happening.” — Paul Shedden

“There’s lots of uncertainty out there and lots of confusion for clients. And that's where we really hope that some of our science and technology and own research can really help.” — Paul Shedden

Experts in this episode:

Joe Peiser, Global CEO of Aon Commercial Risk

Steve Hackenburg, Property and Casualty Leader, Commercial Risk North America

Paul Shedden, Global Head of Risk Capital Analytics

Key Moments:

[2:14] Climate as driver of significant loss activity

[2:44] Effects of tort activity on casualty losses

[5:00] Setting temperature records each year

[7:58] Favorable insurer results and what that means for companies

[9:29] Investing in digital and analytical capability

Additional Resources:

Climate and Catastrophe Insight

Soundbytes:

Previous Episode

Using Data and Analytics to Improve Health Outcomes

Healthcare costs are surging, and organizations are under pressure to strike a balance between employee expectations and the financial sustainability of their benefits programs. This special “On Aon” episode examines what’s behind these rising costs and what companies can do to tackle these risks in the new year.

Experts in this episode:
Doug Melton, Leader of Client Analytics for Human Capital

Meghan Rausch, Analytics Solution Development and Commercialization Leader

[2:05] Defining high-cost claimants
[3:09] Driving factors and conditions associated with high-cost claimants
[5:41] Strategies that employers can utilize to mitigate increasing costs
[9:35] Lessons learned from correct (and incorrect) use of this framework
[14:56] Enhancing total workforce function in 2025

Additional Resources:

The Global Medical Trend Rates Report 2025

Helping Employers Navigate the Rise in High-Cost Medical Claims

Key Trends in U.S. Benefits for 2024 and Beyond

Tweetables:

“It’s really important that employers have strategies in place to try to get ahead of these increasing costs and plan for them.” — Meghan Rausch

“Employers need to know their future risk, not base their strategy on their historical risk.” — Meghan Rausch

“Employers need to look toward the future as they’re trying to manage some of these risks.” — Meghan Rausch

Next Episode

How is the Middle Market Growing Amidst Challenges?

Despite risks becoming more interconnected and complex, some middle market companies are providing a model for others to follow. This On Aon podcast episode examines what successful middle market companies are doing in talent, risk management, and technology.

Experts in this episode:

Don Ortegel, Executive Vice President, Aon North America

Douglas Farren, Managing Director of the Ohio State University’s National Center for the Middle Market

Key Moments:

[3:18] Strong performance in the middle market

[5:21] Interconnection between talent, risk, and technology

[7:07] Supply chain disruption is a growing challenge

[8:27] Companies scale their technology investment for success

Additional Resources:

Driving Growth: The Role of People, Risk, and Technology in Middle Market Success

National Center for the Middle Market

NCMM & Aon On-Demand Webinar

Soundbytes:

“We found that companies that not only just pick the hottest or latest and greatest technology, but actually pick the ones that were right for their business and could be scaled appropriately were companies that that really kind of took off.” — Doug Farren

“Most middle market companies tend to scale their technology investments. In other words, they may not have the capital and the resources to just really go big. So they want to start with a technology that makes sense for them, making sure that it's scalable, that it can really help support the growth plans that that company has.” — Doug Farren

“Companies that viewed risk more strategically, that were proactive about managing it, that had tools and other things in place, rather than being reactive and defensive about it, also outperformed their peers.” — Doug Farren