Data and talent drive the insurance sector
Aon’s Jason Noronha explains how the company uses data to gain an edge over competitors.
Aon has grown to become one of the world’s foremost insurance institutions, but the company cannot rest on its laurels. Technology is increasingly shaping the direction of the industry, helping companies streamline their operations while enhancing the proposition for customers.
Jason Noronha Head of P&C Actuarial Consulting, Strategy and Technology Group at Aon has seen the changes technology can bring to the industry first hand during his time at the company.
Noronha entered the industry “by accident,” he told Morning Wire after he left a job at an investment bank. I very quickly realised it wasn’t something I enjoyed. ” He then decided to join an actuarial grad scheme at Aon, and two decades later, he’s still there.
The actuarial side of the insurance sector business has grown in recent years, becoming more important from a data and forecasting perspective. “There weren’t that many actuaries in the P&C market when I started,” Noronha said. “What has really changed in recent years, as complexity and volatility has increased…what we’re finding is that actuaries are being called on more and more not just to satisfy regulatory capital and reserving needs, but to help insurers make commercial decisions and support and strengthen their portfolios,” he added.
The role of actuaries
Data has always been at the core of the actuarial profession, and in a world that’s becoming increasingly data-dependent, actuaries are being increasingly called upon to help insurers such as Aon derive patterns from the figures.
“The demand for robust analytics and being able to use data and the latest tech is only increasing,” Noronha said.
“In the insurance industry, we have so much data, and historically, it hasn’t been very well managed or utilised. If you can wrangle it appropriately, the data in an insurance company provides so much power and insight,” he continued.
“There’s a real focus in the industry on understanding the latest data and tech to better address the risks and challenges in the market.”
Noronha explained that a great example of how Aon is using technology is harnessing Aon’s broking data to support the analytics around Aon Client Treaty.
“Having confidence in the data and performance of the treaty helps markets confidently participate in the facility, which helps increase the efficiency of the market overall,” he continued. That’s particularly important in a market such as Lloyd’s of London, where underwriters are looking at complex risks on a daily basis and they need to be sure the data is as accurate and reliable as possible. “In Lloyd’s, people are writing complex risks. We’re helping to enable and facilitate the efficient placement of these risks so both insured and insurer are achieving the best outcomes,” Noronha said.
Developing personal connections
Data is helping to shape the insurance industry, but personal connections are still just as important. Aon’s global footprint and international teams help it build on the data to achieve the best possible outcomes for its clients and partners. “One of the benefits of being part of the world’s largest broker is we have deep expertise in every market, in every area, in every industry,” Noronha said. “If we don’t have the right expertise in our team, we can very quickly connect with the right people across the network.”
Being able to lean on a global network and deploy data effectively will be key in helping Aon and its partners navigate the upcoming challenges in 2025. “The key challenge for insurers moving forward will be effective portfolio management as the market is likely to start softening into 2025,” Noronha explained.
“Coming up with an effective business planning framework to manage through insurance rate cycles as well as economic and political uncertainty is key. There’s a fine balance between maintaining top-line revenue growth and delivering bottom-line results whilst making sure you’re not overexposed to specific risks within the portfolio,” he added.
After 20 years in the industry, Noronha is still as committed to insurance as he was when he started and is committed to helping the next generation onto the ladder. “The insurance industry is not great at marketing to graduates. But, the whole world economy is supported by insurance,” he explained.
“The ability to pool risk enables progress, innovation and commercial risk taking… and allows the economy to grow,” and the industry as a whole needs to be better at communicating its role in the global economy to attract new talent, Noronha summarised.