Aon has renewed its Aon Client Treaty (ACT) for 2027 and increased its share of eligible placements to 35% from 28.5%, giving Canadian insurers and corporate clients more committed capacity for large and complex risks.
From January 1, ACT will provide 35% co-insurance on eligible business placed through Aon’s Global Broking Centre in London, and on facultative reinsurance placed by its Reinsurance Solutions business. The facility is led by QBE and backed by Lloyd’s syndicates, and follows the terms and pricing of the lead placement. Where local law allows and subject to eligibility, a 1.5% client dividend will apply to the larger share. Clients must agree to use the facility, and Aon said it manages placements under its conflicts of interest framework.
“As the risks our clients face grow more complex and interconnected, efficient access to risk capital has never been more important,” said Joe Peiser, chief executive of risk capital at Aon.
Since its launch in 2016, ACT has placed more than US$5 billion in gross written premium.
Aon said the change is particularly significant for facultative reinsurance, which ACT has covered since late 2025. Insurers placing large or complex individual risks through Aon can now get committed capacity for a larger share of each placement.
That’s relevant in Canada, where large individual risks are increasing. Ottawa’s Defence Industrial Strategy points to $290 billion in defence-related capital investment over the next decade, and the federal Major Projects Office is overseeing major infrastructure and energy developments. Individual risks of that size can exceed what Canadian insurers want to keep or place under their treaty programs, so they turn to facultative reinsurance.
The expansion comes as Canadian commercial conditions ease. Aon’s own fall market update found pricing flat to down for well-run risks heading into 2027. Follow facilities like ACT give insurers a steady flow of business and give brokers more certainty in completing placements.
For Canadian insurers buying facultative cover through London, a larger ACT share means quicker placement of big risks and a small dividend on the facility’s portion. For brokers placing global programs for Canadian corporations through Aon, it can add speed and certainty on difficult risks.
The trade-off is that more of each placement goes to a pre-agreed panel. Clients will want to be confident the facility delivers the best overall terms, and that Aon’s conflicts framework is applied rigorously. Underwriters outside the facility will compete for a smaller share, which could add to pricing pressure in a softening specialty market.
