Aon, the global insurance and reinsurance broking group, has expanded its Automated Event Response (AER) service to include US severe convective storms (SCS), further assisting carriers to manage losses from what Aon describes as the costliest insured peril of the 21st century on a cumulative basis.
In 2026, US SCS losses in January and February were reported at less than $1 billion, but activity picked up in March and two separate SCS outbreaks are expected to drive losses of more than $1 billion each.
In light of the rise in SCS insured losses, Aon has underlined the need for faster, decision-ready loss intelligence during active events. To achieve this, the broker has expanded its AER service to include US SCS events, which the firm says will help “insurers to manage losses, deploy resources and respond quickly to policyholders during active weather events.”
The AER service already covers perils such as US hurricanes, European windstorms, and Japanese typhoons. Aon notes that the expansion to include US SCS combines its latest SCS catastrophe model with daily meteorological data and storm reports to provide updated event loss estimates aligned to how insurers manage their portfolios, capital, and business operations as events occur.
Aon explains, “Against continued loss pressure from SCS on insurers’ profitability, the AER solution is designed to support faster, more confident decisions during active events and in the critical days that follow. By delivering daily, decision ready loss and claims count estimates, AER helps insurers manage SCS volatility across underwriting, exposure management, reinsurance and claims.”
As well as for insurers and reinsurers, this expansion to include US SCS is relevant for the insurance-linked securities (ILS) market as the peril is covered by many ILS arrangements, including catastrophe bonds.
Aon highlights some of the key benefits of its AER service, including its ability to drive faster response times with greater confidence, and provide a view of gross, ceded, and net positions in reinsurance terms. The solution also promotes strengthened stakeholder communications, and provides clients with the tools to make clearer portfolio and pricing decisions around SCS tail risk.
Specifically for US SCS, Aon’s AER service includes key functionalities such as daily modeled loss calculations, customizable event definitions aligned to contract structures, and dynamic updates for 72 hours post-event.
Tracy Hatlestad, head of North America analytics for Aon’s Reinsurance Solutions, said, “Severe convective storms are no longer isolated events for insurers – they are an ongoing source of volatility that is reshaping how capital and claims decisions are made. During active events and in the days that follow, carriers face increasing pressure to act earlier, communicate clearly and understand their net positions while loss information is still evolving. Having daily, decision ready loss insights is becoming critical to managing U.S. SCS exposure with clarity and confidence.”
