REFILE-Aon placed $3 billion of parametric limit in 12 months: Marcell

By Henry Gale

June 9 - (The Insurer) - Aon has grown its parametric business to $3 billion of limit, CEO of global solutions Andy Marcell said at the company's investor day on Monday.

"I think back to two or three years ago, we probably did 20 to 30 parametric transactions for corporate clients," Marcell said, adding that now the broker is doing more than 100.

"And in the trailing 12 months, I think we've bound $3 billion of limit in that category," he said.

Marcell described how a California-based company worked with Aon on a parametric bond that would provide a cash benefit to its employees if they are affected by an earthquake.

He also said more clients in the Southern U.S. had turned to the parametric market as they bought more limit for severe convective storm risks in recent months, partly driven by awareness of the frequency and severity of SCS events.

Aon CEO Greg Case said on the company's Q1 earnings call in April that it had recently placed parametric SCS coverage for a large steel firm, in what he thought was "the biggest parametric on severe convective storm that's ever been done."