Rising Data Center Construction Boosts Insurance Opportunities for Brokers

The surge in data center construction has opened significant opportunities for insurance brokers, fueled by a growing demand for technological solutions, such as generative artificial intelligence. This trend has resulted in diverse regulatory compliance requirements and insurance needs for facility owners. Aon executives highlight substantial growth in their construction division, attributed to the rise in data center development, which has led to increased insurance capacity from market players like Aon, FM, and Marsh.

Aon President and CEO Greg Case remarked on the potential of tapping into this generational opportunity, noting significant progress already achieved. Aon has secured substantial reinsurance capacity, including a $5 billion treaty for an insurer's data center portfolio. The company's fourth-quarter revenues reached $4.3 billion, reflecting a 3.7% year-over-year increase, with a 5% growth organically. The commercial risk solutions sector posted $2.33 billion in revenue, marking a 6.5% improvement, while the reinsurance brokerage division generated $379 million, up 8% annually and organically.

Despite a 15% to 20% drop in property reinsurance rates during January renewals, Aon CFO Edmund Reese expressed confidence in achieving the company's 2026 organic revenue growth targets, supported by increased demand for higher reinsurance limits and international facultative coverage. Additionally, Aon's health and benefits revenue increased by 3.4% to $1.11 billion, while the wealth management and investment advisory division saw a revenue decrease of 9.6% to $490 million, impacted by Aon's divestment of most of NFP's wealth management business. For the quarter, Aon reported a net income of $1.7 billion, more than doubling its profit from the previous year, with annual revenue reaching $17.18 billion, up 9.4% year-over-year.