Aon Benfield Canadian Rendezvous Dominic Christian Executive - - PowerPoint PPT Presentation
Aon Benfield Canadian Rendezvous Dominic Christian Executive Chairman, Aon Benfield International October 2013 What has changed since 1987 Then Now Space Travel Men on the moon Private Space Travel Car Travel Flying Self driving Energy
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Then Now Space Travel Men on the moon Private Space Travel Car Travel Flying Self driving Energy Running out Shalegas Navigation Maps GPS Information Yellow pages Internet Life Expectancy 74 81 Income level per capita $16k $52k Pensions & Healthcare Company provided Personal responsibility Money Big Bang Quantitative easing
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1987 2013 Population 26 mn 35 mn GDP $ 430 bn $ 1,825 bn Unemployment 8.80% 7.10% 10 year govt. bonds Canada 10% 2.8% US 8% 2.5% Exchange rate CAD-USD 0.85 0.99 CAD-GBP 0.44 0.63 Inflation Canada 4.4% 0.9% US 1.5% 1.5% Trend in mega-liability events? D&O, E&O new; asbestos a fine insulator BP, TEPCO $50B+ events P&C premium $ 11 bn $ 53 bn
10 20 30 40 50 60 G7 GDP E7 GDP 2000 2010 2020 2030
AVERAGE RATE CHANGE
% last decade
PPP ($ trillion)
2.2 0.6 Knowledge- based industries Other
4x
1997 2007 Scenario
2020 100%=
37 55
84
EUR bn
Property General Liability 37 43 52 63 57 48
EUROPEAN EXAMPLE Source: McKinsey Source: McKinsey Source: World Bank, PwC EUROPEAN EXAMPLE
Aon Benfield | Proprietary&Confidential
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Aon Benfield | Proprietary&Confidential
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Reinsurance Brokers - 2012 ILS Managers Lockton 0.02 UIB 0.05 Miller 0.05 BMS Group 0.06 Cooper Gay 0.18 JLT 0.20 Towers Watson 0.21 Willis Re* 0.68 Guy Carp* 1.08 Aon Benfield* 1.51
USD Bn
Top 3 $ 3.3 bn 81% Top 10 $ 4.0 bn 100%
* 2012 results updated for top 3 brokers which constitutes ~80% of the industry Annual Nat Cat Issuance – 2013 Year-to-Date Rank Investment bank Notional Deal count % of notional % of deals 1. Aon Benfield Securities 2.1 10 42.6% 47.6% 2. Guy Carpenter 1.8 7 35.8% 33.3% 3. Goldman Sachs 1.3 5 26.0% 23.8% 4. Swiss Re 1.3 5 26.8% 23.8% 5. Deutsche Bank 0.9 3 18.9% 14.3% 6. Munich Re 0.9 3 18.1% 14.3% 7. Willis 0.2 1 3.7% 4.8% 7. BNP Paribas 0.1 1 2.5% 4.8% Total Nat Cat Issuance – 2010 Onward Rank Investment bank Notional Deal count % of notional % of deals Total 2010 to 2013 1. Aon Benfield Securities 8.2 30 44.1% 47.0% 2. Swiss Re 5.7 24 31.4% 29.3% 3. Goldman Sachs 5.6 22 31.2% 27.2%
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Aon Benfield | Proprietary&Confidential
Product Development & Market Selection Marketing & Distribution Pricing & Underwriting Policy Administr ation Claims Investment
Reinsurance
Leadership questions:
products differentiated?
my value proposition?
in profitable markets?
market changing?
the distribution game?
partners should I select?
proposition clear to customers and distributors?
risks correctly?
leveraging company knowledge and data?
underwriting efficiently?
costs under control?
systems and functions robust?
the right amount on claims?
claims in an efficient, low cost, expedient manner?
too much risk?
transferring risk efficiently?
investment portfolio
structured ?
Aon Benfield | Proprietary&Confidential
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Understanding how we build value for clients Having a view on the worth of what we deliver Helping clients understand the value we deliver Good feelings and right solutions
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