Aon Expands Follow-Form Facility Capacity to 35%
Aon announced on Wednesday that it has renewed and expanded its automatic follow-form facility for 2027. The brokerage is increasing the share of eligible placements covered by the Aon Client Treaty facility from 28.5% to 35%. This facility, backed by Lloyd’s of London syndicates and led by QBE, offers prearranged co-insurance capacity that matches the lead insurer’s terms and pricing.
The expanded capacity takes effect Jan. 1 and applies to eligible business placed via Aon’s global broking center, as well as facultative reinsurance placements. While the facility’s 1.5% premium discount remains unchanged, it will now apply to the larger share of eligible placements, subject to local regulations. Facultative reinsurance, integrated into the facility in late 2025, is identified by the firm as a key growth area. Since its 2016 inception, the facility has placed over $5 billion in gross written premium.
The expansion of follow-form facilities reflects a broader trend among major brokers seeking to accelerate placement speeds and secure additional capacity in a competitive market.
Why it matters
This expansion signals a continued industry shift toward automated, pre-negotiated capacity models to streamline complex placements and manage facultative reinsurance growth.
FAQ
What is the new capacity percentage for the Aon Client Treaty facility?
The facility's capacity for eligible placements has increased to 35%, up from 28.5%.
Who leads the Aon Client Treaty facility?
The facility is led by QBE and supported by Lloyd’s of London syndicates.
When was facultative reinsurance added to the facility?
Facultative reinsurance was added to the facility in late 2025.
How much gross written premium has the facility placed since its launch?
Since launching in 2016, the facility has placed more than $5 billion in gross written premium.
Source: Business Insurance. See the original source for full details.
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