Cole Mayer has been appointed to lead Aon’s worldwide parametric initiatives and accelerate use of index-based solutions. 

Reporting to Aon Securities CEO Paul Schultz, Mr Mayer will manage a global centre of excellence for parametric products, coordinating structuring and distribution across lines and regions. He will lead a team of specialists, including in the Asia Pacific, to identify opportunities. 

San Francisco-based Mr Mayer spent 15 years at Swiss Re, ending as Senior Structurer VP after holding executive underwriting roles. 

“With Cole leading our global parametric efforts, we are reinforcing our commitment … at a time when many clients are facing capacity constraints in traditional markets when seeking coverage for their unique exposures,” Mr Schultz said. 

Aon has “long recognised” that parametric products can be used not just by insurance and reinsurance companies, but also commercial organisations, he said, especially those with extensive asset portfolios exposed to potential natural hazard events. 

Parametric products fill coverage gaps and provide a risk transfer option better aligned to the specific requirements of their operations, Aon says. Payouts are based on certified indexes such as windspeed or rainfall, or commercial metrics such as hotel occupancy rates.  

Parametric triggers, which have long been a feature of insurance-linked securities such as catastrophe bonds, have grown in popularity in recent years, Aon Risk Capital CEO Andy Marcell said. 

“There is increasing demand ... for innovation around risk transfer, and to continue to deliver client value Aon needs to be ever more coordinated in its global network and approach,” he said. 

Aon Human Capital and Commercial Risk Solutions CEO Lambros Lambrou says having a unified capability will enable Aon to offer an increasing range of robust parametric solutions to address a wide variety of exposures. 

"This area is heralding an evolution in risk transfer, and we are excited to see how it will develop through the efforts of our centre of excellence for parametric products,” he said.