Greg Case - Our Six Capabilities
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We're describing our 6 capabilities.
Risk, Retirement, Health, Talent,
Data and Analytics, Capital.
Our six. And we've got to be ready to be able
to talk and move and toggle between
different conversations and
talk about these six areas.
Here's what this sounds like.
In Risk, every company
you're sitting across the table from
in Risk, is managing volatility.
They've got new risks, it's compounded by
new regulation. They're adapting to
globalization, whether they're global or not.
They're trying to keep pace with new risks:
Cyber. Pandemic. All the different
things out there on the horizon.
And if you're from AON Hewitt
and you're sitting across from
one of your clients, they have these
risk issues. Period. By the way,
half of them, according to our risk survey,
believe their risks are gonna change
over the next 3 years.
That's a fact.
Against that set of client challenges
and risk, we have an amazing set
of capabilities. 20 billion dollars spent
over the last number of decades
to build the platform. 350 million
a year on data and analytics.
Thousands of competitors were unique
among them. Power of AON United,
a set of customized solutions.
What we can bring to the table here
is unprecedented. Think about examples
like Uber, thousands around the world.
Tremendous capability.
Retirement. Every one of our clients
that has employees...
Do any of your clients have employees?
Any one of them have a set of
retirement issues. They're big.
Their retirement issues
start with the idea that the landscape is
changing very fundamentally.
Employees, every one of those employees
has expectations. They're not gonna be met.
Who is responsible for that? Unclear.
Little bit of them, little bit of the company,
little bit of the government.
No one knows how it's gonna play out.
The level of advice needed here is huge.
Again, our pension survey basically suggests
that the trustees believe half
of their strategies are inadequate.
And against that challenge, our capability.
We are market leaders,
we've got the best insight, remember
I described 6 trillion, part of 31 trillion.
We have very detailed, data driven solutions
that we bring to bear on behalf of our clients.
1.3 million we track every year in an index
and choose on how that evolves.
5000 discrete custom solutions for clients.
We have expertise that is both on the
investment side and the administration side.
That's incredibly rare. The power,
what we have on retirement, is unique.
And, examples: Motorola, we've talked
about it before, we freed up 4 billion dollars
on Motorola's balance sheet, to help them
actually drive their strategy as a result of this.
Tremendous. British Airways,
I love this example.
This is an epic crisis for British Airways.
Their pension deficit,
greater than their market cap.
A bit of a problem. They couldn't actually secure
a plane without going to their pension trustees
to ask for permission. Our team
helped them actually evolve beyond that,
to be able to drive their strategy.
Health, spend is increasing,
it's growing at 7% a year, expected to for the next
foreseeable future. Demographics are getting
worse, aging population. The burdens are
shifting. If you think about it,
out-of-pocket costs for employees
have gone up 81%.
Unbelievable increases
over the last number of years.
Regulatory complexity by itself, there's,
I don't know, 15 thousand new pages
of regulation in the U.S. alone
over the last 18 months.
It's off the charts. And there have been
promises made to employees
that employers just
fundamentally can't keep.
And again, back to what we already do,
talking to our clients, 65% from our
health care survey, our clients, basically
said they have to reduce health care costs.
In order to be able to drive
their strategies forward.
Against this challenge, our capability.
Formidable. John Zern would say:
"We are navigating at the speed of health."
Stronger relationships in the market.
Tremendous innovations we're bringing
to the marketplace on health,
with real experience and expertise.
Again, we administer benefits to 22 million,
across the world. Tremendous capability here.
With very uniquely adaptable solutions
we can bring to the market.
10 thousand in fact, the last count,
unique solutions we brought to the
market on the topic of health.
AT&T for me it's just amazing.
I mean, when Randall Stephenson
places in our hands, literally,
the health needs of his entire
retiree population,
that says it all. Huge.
Talent. Talent: people are our firm's
greatest assets, we know that.
It's true for our clients as well.
Their biggest cost in most cases.
And the solutions on how to actually think
about talent development, value proposition
shaping on behalf of your very precious
talent. Off the charts, tremendously
important, on behalf of our clients.
And our capabilities here again, team,
are unique. We know demand is increasing,
there's 10 billion dollars a year spend alone
on trying to get talent advice.
In the middle of that, we bring very clear,
very specific data driven solutions
that help clients succeed.
And I love the example here:
Dropbox. 400 million individual users.
We've helped Dropbox evolve from a concept
to truly a formidable global player,
working with them on the topic of talent.
In fact, we've done for Dropbox on talent
what we did for Uber on risk. Tremendously,
tremendously powerful and important.
Data and Analytics. This is everywhere,
it touches everything our clients do,
it comes up everywhere, it touches all
of our capabilities, everything they do as well.
It drives challenges for them.
Ultimately, there's so much data...
What do you do with it?
Helping them understand how you translate
data into action and action into results.
Very specifically, it's at the heart
of what our clients have to figure out
how to do. I mean, we know by 2020
there's gonna be 50 billion devices
connected to the internet.
You know, 8 per person around the globe.
And our capability in this regard
is again distinctive. Unmatched
investment, 350 million annually.
Great pattern recognition.
Maybe the best pattern recognition.
Again, 78 billion of insurance premium,
30 billion reinsurance, 6 trillion
on the pension side, and so on and so on.
Tremendous capability we bring to bear
on behalf of data and analytics,
with world class expertise.
6000 analysts around the world,
whether it's in our business units
or it's in Dublin or in Singapore.
Tremendously powerful.
The work we've done with Freddie and
Fannie, which opened up the mortgage
market to insurance capital,
is an example of this.
Tremendously powerful. And that also,
by the way, could show up on the last one here,
which is Capital. The client challenges
here are formidable.
Every one of our insured clients is worried
about capital. M&A everywhere,
new capital coming in into the market.
Tremendously important.
And on the primary company side,
think about this fact:
50% of our clients, when they reflected on
the risk management survey,
50% said their risks are gonna change
fundamentally over the next 3 years.
50 per cent! That means they have uncertainty
that is unprecedented. And against that,
many of the risks they have, are not
addressed by insurance,
are not addressed by insurance capital,
so the opportunity here is tremendous.
And what do we bring?
On capital, we are the innovative
early adopter. We built and trailblazed
the ILS marketplace, more than 25 billion
since 2001. We are the trusted first time partner.
Again, since 2010, we've been the pick
of first partners 2 to 1, compared to
everybody else. We have capability here
no one else has. We've got the best
view of the marketplace, with a combination
of both broking and investment banking
capability we can bring to the table,
which creates very unique insight.
I mean, the work we've just done for
Everest Re, it's phenomenal.
We created a billion dollars
of new capital for them,
lowered underwriting costs, and given them
strategic options to invest back
into the market they simply
didn't have before.
So, team, across these capability areas,
as a senior leader, we've all got to be able
to articulate these core capabilities.
We have to. It's the price of admission.
You've got to be able to do what I just did
very comfortably, in your conversations,
to weave them in. And it's not a new idea.
I know it. I've seen it. Some of the best
storytellers are sitting here,
I've learned from you in this room.
And it's about capturing and codifying
what you do naturally.