The new unit will provide advisory services to help financial institutions, public sector entities and firms with real estate holdings to take better decisions on climate-related financial risks.
It plans to combine climate scenario diagnostics, apply climate hazard data to individual asset locations to understand key geographies that pose a risk today and in the future.
The climate advisory will also build a holistic, end-to-end approach to risk modelling and management that range from scoping exposure to communicating and taking action on strategies.
The unit will combine catastrophe and climate change models from the company’s Impact Forecasting and third-party vendors and analytical expertise its capital, climate and credit specialties.
Liz Henderson, who previously co-headed the Aon’s Reinsurance Solutions’ US Catastrophe Management, will lead the Climate Risk Advisory.
She will report to Aon reinsurance solutions global growth leader Joe Monaghan.
Joe Monaghan said: “In launching Climate Risk Advisory, Aon recognises how financial institutions may benefit greatly from the catastrophe and climate expertise, modeling and solutions we have developed and honed over several decades for the re/insurance sectors.
“Financial institutions can now tap our ongoing investment in our Impact Forecasting models and evolving scientific research, which will help them to navigate volatility and build business resilience.”
The company also claims to have deployed climate risk consulting capabilities for several organisations such as several large mortgage lenders in the US. Furthermore, companies in real estate, agriculture and health solutions will also benefit from Aon’s new capabilities along with financial institutions and governments.