Friday Interview with Pierre Brunel, CEO Aon Switzerland

The interview originally appeared in German in the Handelszeitung: Insurance | HZ Insurance (handelszeitung.ch)

How has your day-to-day life changed since you were appointed CEO of Aon Switzerland in November?

On a very practical level, I now spend the week in Zurich and return to my village in Vaud where my family lives for the weekend. In terms of my agenda, I took over further corporate and regulatory responsibilities when joining Aon’s Board of Directors in Switzerland. However, my focus remains the same: making sure our colleagues have the right tools, engagement level and passion to serve clients with the highest quality standards as well as anticipating their needs. My geographical scope increased but I continue to share the same philosophy with my team leaders so the transition was very smooth.

How big were the shoes your predecessor Felix Jenny left behind?

Felix played a key role in building up the brokerage business for Aon in Switzerland so I took the role as CEO with a lot of humility and dedication. Aon Switzerland went through some organizational changes over the past year: we combined the brokerage business and pension consulting & administration activities and placed them under one management to speak with one voice and serve our clients even better. My direct reports have now increased responsibility and accountability. The new unit represents more than 300 colleagues in 8 offices. We also draw on the resources of the company in the EMEA region. We will soon communicate more on the new structure.

There is a lot going on in the broker market. The merger of Aon with Willis Tower Watson failed in 2021 due to competition law issues. Is the issue completely off ice or are new solutions still being sought?

We always look for new opportunities, also in Switzerland, where we would like to grow. At Aon we are convinced that a critical size is needed to successfully advise clients in today’s challenging environment. Ongoing concentration of the insurance industry, a highly competitive marketplace, higher volumes of regulatory changes, the need for data and analytics to take smart business decisions as well as the provision of an international network in line with business expansion represent some of the issues clients are dealing with. Aon is well-positioned and continues to be one of the most innovative and visionary players in the market while being close to its clients with teams on site.

Do smaller houses have any chance to survive?

Absolutely. Our business is ultimately about people so I am convinced that firms with strong?expertise in a particular industry or region can provide value-add for certain types of insurance needs.

What do you define as the biggest business challenges for your insurance business in the medium term?

The challenges are many and it is essential to anticipate trends in the market to be successful. Aon has always been on the forefront of new developments that are shaping the future. Topics such as ESG (Environmental,?Social,?Governance), issues surrounding mergers & acquisitions, intellectual property as well as the well-being and the rising resilience of the workforce, to name a few, are increasingly important for clients and we are very active in those areas. Tomorrow, we may think about solutions concerning the metaverse and crypto technologies or political risks in Europe and what it means for the markets.

Where do you get the know-how and the technologies to manage the challenges of digitalization?

Aon has always invested in new technologies and innovation to continue to improve the quality of our services. This is a tradition that is deeply embedded in our organization. For us, innovative technology is a key driver of growth.

According to all forecasts, climate change will cause enormous damage and costs. As an insurance broker advising its customers against such damage, how do you face up to these challenges?

Indeed, the growing number of natural catastrophes together with the increasing concentration of assets causes enormous damage and costs. At Aon, we estimate that natural disasters caused more than $343 billion in economic damage over the course of 2021. Even if, the (re)insurance market is well-capitalized and the loss of clients are secured through traditional and alternative (parametric) risk transfer solutions we are convinced that insurance is only part of the answer. Prevention is key and that is why we invest a lot of time and resources to work with clients identifying and quantifying their risks. These analyses can be very useful when implementing mitigation actions together with clients as well as developing business continuity plans to avoid or limit the risk of such damage.

Prevention is key and a lot still needs to be done to prevent irreversible damage to the ecosystem. What is Aon doing to contribute here?

The world needs to step up its efforts and move towards a greener planet so we stand a chance. Technology plays a key role here. Aon has committed to reduce the environmental impact of its operations and to become a more resilient, sustainable organization by achieving net-zero greenhouse gas emissions by 2030. For example, 90% of the paper Aon purchases is recycled or carries an eco-label. Also, with our robust technology infrastructure, Aon is relying on alternative communication solutions that allow us to limit air and vehicle travel.

In some areas of industrial insurance, such as cyber and D&O, prices have risen sharply, and companies' coverage requests cannot always be met. Aren't you afraid that more and more corporations will move to build their own captives, either alone or in combination with others?

In the insurance industry, cycles are not new and are part of the reality. As an innovative advisor it is our job to anticipate such cycles and help clients to adapt their risk transfer strategy accordingly. Indeed, captives or PCCs (Protected Cell Companies which is a kind of rented captive) represent a solution when prices rise significantly. So, we are even encouraging clients to consider such a solution as part of our consulting services. We have?dedicated teams throughout the world including Switzerland which focus on the study, creation, and management of captives. In addition, we have various tools to present risks to insurance companies in a structured way and find the best provider in the market.?

Bio: Pierre Brunel is CEO for Aon Switzerland since November 2021. Previously, Pierre was responsible for Aon Western Switzerland (Romandie) for six years. Before that he held a senior position at a leading international insurance broker in Switzerland and in the Middle East. With more than 30 years of experience in the insurance industry, Pierre has a deep understanding of the Swiss insurance, reinsurance and risk management markets.