Greg Case, CEO of global insurance brokerage Aon, has issued a bold call to action: the insurance industry must attract $1 trillion in private capital over the next decade to bridge the growing gap in coverage for natural disasters and cyber risks.
In a recent interview with the Financial Times, the CEO of Aon, Greg Case, emphasized the urgency of the issue, stating, “If we don’t bring in a trillion dollars in alternative capital in the next decade, we’ve failed.”
Climate and Cyber Risks Intensify Global Insurance Gap
Today, insurers are struggling to keep up with escalating climate-related losses and a surge in cyber incidents. Since 2000, Aon reports that less than one-third of natural catastrophe costs worldwide have been covered by insurance. For example, in 2024 alone, natural disasters caused $223 billion in economic losses, yet only $145 billion of that was insured.
Meanwhile, the cyber threat landscape is expanding rapidly. Despite the growing exposure, less than 20% of corporate information assets are currently insured, based on Aon’s internal data.
This widening protection gap signals a critical need for innovative solutions and significantly more capital to support global resilience.
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Private Capital: A Growing Force in Risk Transfer
Fortunately, institutional investors such as hedge funds, pension funds, and sovereign wealth funds are already deepening their involvement in the insurance market. Through vehicles like catastrophe bonds and insurance-linked securities (ILS), private capital now contributes over $115 billion to the insurance ecosystem.
These investment products offer strong returns that are largely uncorrelated with traditional financial markets, making them attractive to risk-savvy investors. However, investor confidence remains highly dependent on accurate risk modeling and transparency.
Aon Eyes Doubling of Alternative Capital by 2030
According to Aon, the volume of alternative capital flowing into insurance is expected to double within the next five years. This forecast is supported by a growing demand from companies facing reduced underwriting capacity from traditional insurers.
“To the extent we can access other pools of capital… we want to bring as much in as we can, offset the volatility our clients face,” Case said.
To facilitate this shift, Aon has been actively developing and deploying innovative risk transfer solutions, particularly in the parametric insurance space.
Innovative Tools and Digital Investments Power Aon’s Vision
Aon has ramped up its parametric insurance placements. These policies are triggered by predefined events such as weather thresholds, scaling from 30 to more than 100 annually. These solutions have secured over $3 billion in new capacity in just a few years.
Moreover, the firm is investing over $1 billion in analytics and digital infrastructure. Its flagship tools, including the Cyber Risk Analyzer and Health Risk Analyzer, are designed to give both clients and investors greater visibility into evolving risk exposures.
As Greg Case of Aon noted, “If we don’t understand it, you don’t put your capital behind it.” His statement underscores the importance of transparency and data-driven decision-making in building investor confidence.
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Private Capital Is Key to Closing the Protection Gap
Looking ahead, Aon’s strategy makes it clear: private capital is critical to solving the world’s insurance shortfall. As traditional carriers pull back from high-risk markets, alternative funding sources could become the backbone of modern risk management.
By aligning new investment with emerging threats, Aon aims to reshape how global risks are funded. This is a great way to ensure broader access to protection for businesses and communities alike.
