Aon places parametric severe convective storm cover for large steel company

By Henry Gale

April 25 - (The Insurer) - Aon has recently placed parametric severe convective storm coverage for a large steel company, CEO Greg Case said on the company's Q1 earnings call on Friday.

Case described the severe convective storm deal as "massive," saying he thought it was "the biggest parametric on severe convective storm that's ever been done."

He referred to the transaction after describing how volatility in trade, weather, technology and workforce trends bring opportunities for Aon's business, including client interest in the broker's newly launched supply chain diagnostic tool.

The steel firm purchased the parametric cover to help deal with "this new set of risks that are on the horizon," Case said.

He highlighted parametrics and catastrophe bonds as contributors to increased revenue within Aon's Risk Capital segment in the first quarter of 2025. The broker reported organic growth of 5% in Commercial Risk Solutions and 4% in Reinsurance Solutions.

The results of a recent survey conducted by Parametric Insurer suggested that severe convective storm had a lower premium volume than parametric covers for other natural catastrophe risks such as hurricanes and earthquakes in 2024, but was among the fastest-growing perils within parametric risk transfer.