Risk. Reinsurance. Human Resources.

Contacts

About Aon Aon plc (NYSE:AON) is the leading global provider of risk management, insurance and reinsurance brokerage, and human resources solutions and outsourcing services. Through its more than 66,000 colleagues worldwide, Aon unites to empower results for clients in over 120 countries via innovative and effective risk and people solutions and through industry-leading global resources and technical expertise. Aon has been named repeatedly as the world’s best broker, best insurance intermediary, best reinsurance intermediary, best captives manager, and best employee benefits consulting firm by multiple industry sources. Visit aon.com for more information on Aon and aon.com/manchesterunited to learn about Aon’s global partnership with Manchester United.

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The information contained herein and the statements expressed are of a general nature and are not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information and use sources we consider reliable, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate profes-sional advice after a thorough examination of the particular situation.

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Richard Waterer Managing Director EMEA, Risk Control and EngineeringAon Global Risk Consulting+44 (0)20 7086 3263  richard.waterer@aon.co.uk  Chris KerrPrincipal Consultant, Risk Control & EngineeringAon Global Risk Consulting+44 (0)20 7086 1033 chris.kerr1@aon.co.uk

Joe GalushaGroup Managing Director, Risk Control & ClaimsAon Global Risk Consulting+1 248 936 5215joe.galusha@aon.com

Risk. Reinsurance. Human Resources.

Aon Risk Solutions

Aon Property LaserThe Value that Property Risk Consulting Drives in Managing Total Cost of Risk

Aon Property Laser: An Innovative Approach to Property Total Cost of Risk ManagementReducing an organisation’s property total cost of risk (TCOR) is fundamental to its operational resiliency and financial bottom line. Aon Property Laser is a unique property and business interruption risk management methodology that incorporates leading-edge diagnostic and analytical tools to quantify risk exposure. By identifying and analysing key property performance indicators, Aon Property Laser helps organisations to improve their risk profile, while also making the insurance policy work more effectively should a loss occur. Our property experts benchmark pre-loss and post-loss risk management practices, activities and results, to help assess and optimise an organisation’s property risk profile.

What is Aon Property Laser?

• An advanced approach to understanding an organisation’s pre- and post- loss property profile using analytics and industry benchmarking

• A tool that integrates the combined expertise of Aon’s property risk network, from broking, to risk consulting, to catastrophe modelling, engineering and claims management

Benefits

• Identifies and prioritises risk mitigation opportunities

• Identifies and helps to prioritise areas for improvement in an organisation’s property programme

• Potential to deliver a quantified impact using a multi-disciplinary and integrated approach to risk

Risk Profile From an underwriter’s perspective, a client’s risk profile is a key consideration in determining pricing, terms and capacity. In addition to recent and historical loss experience and industry sector, a risk profile typically includes property geography, values, structure, and catastrophe risk exposure. The risk profile also considers a firm’s implementation of sound risk management practices, such as fire safety, updated and regularly exercised business continuity plans, and supply chain resiliency. Measures aimed at strengthening an organisation’s risk profile can potentially lead to more effective negotiations with insurers, and a lower overall cost of risk.

Prevention and Engineering Risk leaders can potentially manage, mitigate and minimise loss exposures, ranging from damage or destruction of owned physical assets and those of suppliers, to business interruption or curtailment from a variety of perils. For businesses and suppliers that operate in catastrophe-prone regions or that have limited water supplies to address fire risks, property risk control and engineering services can help to elevate a company’s capabilities to meet global standards.

Supply Chain For many businesses, even a temporary outage of a critical supplier, can have devastating consequences that extend beyond short-term revenue loss, including reputation damage and deterioration of market share. Given the strategic significance of global supply networks, businesses need to direct adequate resources to maintain their supply chains and protect the value they deliver. Solutions ranging from enterprise risk management to actuarial capabilities can help organisations pinpoint how and where value is generated, quantify potential vulnerabilities, and focus resources where they will deliver maximum protection; as well as assess or determine the adequacy of business interruption (BI) and contingent BI insurance coverages.

Business Continuity Management An impactful exposure for any business is the disruption or curtailment of critical operations. Besides the obvious loss of revenue, is the potential for prolonged or permanent loss of market share, reputational damage, and departure of key employees. Effective business continuity management calls for identifying vulnerabilities, calculating maximum foreseeable loss, and developing plans that focus resources on critical operations.

Loss History Property insurance programmes consider 5- and 10-year loss experience. Many property underwriters consider loss history, including both frequency and severity, to be a significant factor in rating a client’s insurance programme. Therefore, there is a direct correlation with an insured’s loss experience and its property total cost of risk. By analysing geographic locations and vulnerability to natural hazards, industry-specific exposures, supply chain, construction and business continuity planning, businesses have the potential to reduce their exposure to loss going forward.

Values (Asset Valuation) The ability to provide precise values of properties to underwriters is critical. This not only ensures proper recovery in the event of a loss, but helps to optimise the property insurance purchase. Similarly, businesses need concise analyses of the critical functions and operations contributing to their revenue streams for accurate assessments of potential business interruption exposures. Regardless of the size or scope of the operation, organisations need to ensure that their property, and business interruption values are accurate and current, as well as distinguish replacement values from market values for physical assets.

Business Continuity Management

Supply Chain

Global Rapid Response

Asset Valuation

Business Interruption

Property Claims Advocacy

Complex Claim Preparation & Presentation

Aon X-V Analysis®

Property Risk Control & Engineering

Insurance Recovery Whenever a business sustains a loss – whether it involves damage to an individual facility, or a major catastrophe that causes supply chain outages or destruction of multiple properties – effective insurance recovery requires a fast and often comprehensive response from claim professionals. The ability to achieve a timely and complete insurance recovery is a critical element of a company’s TCOR. Therefore, businesses should take steps in advance of any loss events to review their protection, and position themselves to maximise recoveries should a loss occur.

Aon Property Consulting Services That Help Manage Total Cost of Risk

RetentionPolicyTerms

Structure

Limits &Sublimits

InsurerStability

Values

LossHistory

RiskProfile

Prevention &Engineering

BusinessContinuity

SupplyChain

InsuranceRecovery

PricingCATExposure

AonPropertyLaserTM

Property Risk Consulting Areas of Focus