Insurance Daily News

Aon expands client treaty share to 35% for 2027

Aon has renewed its Aon Client Treaty (ACT) for 2027 and increased the proportion of eligible placements it will support from 28.5% to 35%. Effective 1 January, the treaty will provide 35% co-insurance on eligible business placed through Aon’s Global Broking Centre and on facultative reinsurance placed by its Reinsurance Solutions business. Where local law and regulation allow, a 1.5% client dividend will apply to the larger share.

The facility is led by QBE and backed by Lloyd’s syndicates, giving clients access to capacity on the same terms and pricing as the lead placement. Aon manages placements under its conflicts of interest framework, and usage requires client agreement. Joe Peiser, chief executive of risk capital at Aon, said efficient access to risk capital is increasingly important as client risks become more complex and interconnected.

Facultative reinsurance, supported by ACT since late 2025, is a key growth area. Helene Madell, chief executive of Aon’s Global Broking Centre, noted that demand for facultative capacity is driven by large infrastructure, energy and technology projects that exceed insurers’ appetite for retention or treaty placement. Since its 2016 launch, ACT has placed more than $5 billion of gross written premium.

The expansion reflects a broader shift toward broker-led facilities that commit a fixed share of capacity across eligible placements, often backed by Lloyd’s and other specialty markets. As specialty pricing softens, these facilities provide insurers with a steady flow of business and give brokers greater certainty in completing placements. Insurers in Asia, the Middle East, Latin America and Europe buying facultative reinsurance through London can now place large, complex risks more quickly and receive a small dividend on the share placed through the facility.

For corporate clients with global programmes placed through Aon’s Global Broking Centre, the larger ACT share can speed placement and add certainty on difficult risks. The trade-off is that a greater portion of each placement goes to a pre-agreed panel, potentially reducing the share available to underwriters outside the facility and adding pricing pressure in an already softening specialty market.

Why it matters

The higher ACT share gives insurers faster, more certain access to capacity for large, complex risks, while brokers gain greater placement certainty.

FAQ

What is the new share of eligible placements under the Aon Client Treaty for 2027?
The share has been increased to 35% from 28.5%.

Which entities lead and back the ACT facility?
The facility is led by QBE and backed by Lloyd’s syndicates.

What dividend may apply to the larger share of placements?
A 1.5% client dividend may apply where local law and regulation allow.

Since when has ACT supported facultative reinsurance?
ACT has supported facultative reinsurance since late 2025.

Source: Insurance Business UK. See the original source for full details.