Two years after unveiling a $100mn intellectual property facility led by London-based TMK, Aon said today it has launched an MGA, with the Lloyd’s carrier’s former underwriter Ian Lewis leading the facility.
Demand for new perils such as IP, cyber and pandemics were recently cited by Aon Group CEO Greg Case as a driver for the future growth of the broking heavyweight and a reason for the $25bn+ all-share acquisition of rival WTW.
In today’s announcement, Aon confirmed that Lewis – who inked the original 2018 deal on behalf of TMK – has joined the global broker to “spearhead the development of a strong, market-leading underwriting team and the creation of a portfolio of innovative risk transfer solutions for IP and other intangible asset risks to be offered by this Managing General Agent (MGA)”.
According to his LinkedIn profile he joined Aon to take on the role of global head of IP underwriting solutions in September last year.
“We are investing aggressively to bring together market-leading experts from the IP world to best serve our client needs,” said Lewis Lee, CEO of IP Solutions at Aon.
“Considering the current economic environment, the importance of managing the value creation opportunity afforded by IP and the downside risk mitigation of IP has never been higher, and the timing of Aon’s IP MGA could not be better for our clients”, he added.
The MGA is still led by TMK and is backed by other, unnamed Lloyd’s syndicates.
According to Aon, the facility provides primary indemnity limit of $100mn on an annual, claims made basis. Cover can include contractual indemnities, trade secret misappropriation and third-party infringement defences, including certain litigation costs, damages and loss mitigation.
Target markets range from SMEs to multi-national corporations in North America, Europe, Australia, New Zealand and “parts of Asia”.
Speaking to analysts in the immediate aftermath of Aon’s swoop for WTW in March 2020, Case noted that six of the top ten global risks are uninsured or underinsured, with difficult-to-model risks, such as cyber, intellectual property and climate change on the rise.
The transaction “allows us to broaden our reach, grow the overall pie and create net new opportunities to meet growing demand,” said Case.
Intangible assets are estimated to account for at least 85 percent of companies’ values that comprise the S&P 500.