Aon’s 2025 Catastrophe Risk Management Survey has highlighted wide variations in catastrophe model adoption, despite insured losses from natural disasters in the first half of 2025 being the second highest on record.

While 82% of respondents said analytics are integral to risk management and reinsurance placement, 48% do not license cat models, and only 27% have dedicated model evaluation teams. Nearly 60% operate with cat risk teams of five or fewer people and rely heavily on the analytical expertise of reinsurance brokers.

More than 70% valued models grounded in scientific and engineering principles, with 44% ranking methodology credibility as the most important licensing criterion. Regional differences emerged, with US insurers favouring faster adoption and less emphasis on climate change, while UK and EMEA respondents favoured slower adoption with greater climate focus.

Katie Carter, head of view of risk advisory for Aon in the Americas, commented: “In an increasingly complex and volatile global risk environment, our survey highlights the importance of re/insurers implementing a multi-model, risk-level catastrophe management strategy that incorporates the latest climate science.”

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