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Aon (AON) Launches Cargo Insurance Solution, Boosts Portfolio

Aon plc AON recently launched a solution in a bid to offer cargo insurance coverage aimed at effective distribution of COVID-19 vaccines globally. Shares of Aon have lost 1.8% in the last day’s trading as of Apr 14, replicating declines in broader markets.

It is worth mentioning that the solution has been developed by partnering with several insurers. Notably, the insurtech firm Parsyl will support the newly launched insurance solution by acting as its dedicated data platform. While the role of lead underwriter will be performed by specialist underwriter Ascot Group, Munich Re is likely to provide the much-needed reinsurance support. Some other insurers that Aon has been working closely with for launching the solution include AEGIS London, AXA XL, AXIS Insurance and Beazley, Fidelis.

The solution will make use of sensor data and analytics leading to enhanced supply chain protection, risk management and claims support activities. Qualified parties, comprising pharmaceutical firms, government bodies, transportation and logistics companies, and health systems, of the vaccine supply chain will have access to the solution.

In fact, Aon’s insurance solution is focused on offering improved All Risk Marine Cargo insurance, which encompasses diversified and comprehensive coverage to any possible theft, loss or damage to the cargo. As a result, the solution tends to bring into notice any divergence in temperature of the doses from the agreed-upon range amid the course of transportation or storage. If such a case arises, prompt payments are arranged for those doses that do not comply with temperature requirements thereby limiting losses suffered. This is in sync with the endeavor of facilitating financial protection to companies engaged in the vaccine distribution process.

Deemed to be a time opportune one, the latest solution strives to bolster the reach of COVID-19 vaccines to the global population. New variants of the virus have added to the woes of people worldwide thereby necessitating vaccination in order to generate immunogenic response against the virus. Various healthcare providers have actively come to the forefront to develop vaccines to fight the COVID-19 virus, which resulted in vaccines from Pfizer PFE-BioNTech and Moderna. While it is easier to distribute batches of vaccines on a local or regional basis, certain problems have been identified while transporting the same through air or other modes of transport across the globe.

Per the World Health Organization, hindrances encountered in the way of vaccine distribution process include cold chain failures and non-functional freezers. If vaccines are lost this way, it would be difficult to cater to the pandemic induced large-scale health woes. This has necessitated the need for offering supply chain protection and keeping a check on temperature standards while shipping COVID-19 vaccines worldwide, exactly the same purpose served by Aon’s latest solution.

Shares of this currently Zacks Rank #3 (Hold) company have gained 11.2% on a year-to-date basis compared with the industry’s growth of 9.5%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

For quite some time, Aon has been relying on sensor technology to develop tailored marine solutions. These solutions devise a suitable marine policy thereby ensuring marine insurance and logistics risk management, and also arranges for prompt and full compensation in case of any loss. Notably, these solutions are of great importance to the cargo owners considering the innumerable risks present in the transport chain of a cargo shipment amid a complicated global transport and logistics environment.

Time and again, Aon has put its best foot forward in rolling out solutions for broadening its product portfolio and bolstering client reach. In December 2020, the company unveiled a digital cyber insurance solution, which intends to help small and middle-market businesses in accessing cyber insurance coverage. Last November, it introduced QoIP Solution for generating higher transaction value for the IP portfolio of companies.

Apart from rolling out a host of new solutions, Aon has undertaken a plethora of buyouts and collaborations for enhancing its capabilities. Notably, a host of buyouts have been undertaken in the insurance brokerage industry. Arthur J. Gallagher & Co. AJG recently acquired Parisco AS to enhance its capabilities across marine, energy and renewables sectors. Also, Marsh & McLennan Companies, Inc.’s MMC unit Marsh & McLennan Agency LLC (“MMA”) recently acquired PayneWest Insurance, one of the largest independent agencies in the United States.

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