Aon Benfield, the global reinsurance intermediary and capital advisor of Aon plc, on Oct. 26 announced its reinsurance and analytical capabilities expansion within Florida to accommodate increasing client demand for specialized insurance expertise in Miami.
Beginning in Jan. 2016, Aon Benfield plans to increase reinsurance broking and analytics staffing in its West Palm Beach office. The office staff will report to Aon Benfield Executive Managing Director Bob Keane and will initially be staffed by managing directors Gard Olbers and Chris Lux.
According to the Aon Benfield's Reinsurance Market Outlook – Sept. 2015 report, overall reinsurance demand in peak regions increased substantially for the second consecutive year.
The increase was particularly notable in Florida and other U.S. coastal areas, given the attractive risk transfer margins offered in both the alternative and traditional markets. Consequently, 2015 saw a reduction in participation in government risk transfer programs, such as the Florida Hurricane Catastrophe Fund, by numerous insurers, who chose to utilize private reinsurance capacity.
Despite the decrease, the Florida private insurance market also witnessed significant growth, including a resurgence of private reinsurance demand, due to the growing Florida population, positive construction trends and, additionally, the depopulation of policies from Citizens Property Insurance Corporation (Florida Citizens) – a government entity providing insurance protection to Florida policyholders who are entitled to, but unable to find, property insurance coverage privately.
"In line with the trend towards increased reinsurance purchasing for Florida risk in the private markets, we are seeing strong local demand from clients both for transactional capabilities and data and analytical solutions,” Keane said. “To meet this demand, we are increasing the number of reinsurance brokers at our West Palm Beach office, as well as the number of analytics professionals.”
“It is an exciting time in the state, and Aon is being proactive in expanding its Florida presence in order to meet future demand and capitalize on growth opportunities," the director said.
Aon plc is a British multinational corporation headquartered in London, U.K., providing risk management, insurance and reinsurance brokerage, human resource solutions and outsourcing services. Aon has approximately 500 offices worldwide, serving 120 countries with 65,000 employees.