Aon Corporation ("Aon"), through its various subsidiaries worldwide,
serves its clients through three operating segments: ' Risk and Insurance Brokerage
Services acts as an advisor and insurance broker, which helps clients manage their
risks, and negotiates and places insurance risk with insurance carriers through
our global distribution network.
' Consulting provides advice and services to clients for employee benefits,
compensation, management consulting, communications and human resources outsourcing.
' Insurance Underwriting provides specialty insurance products, including supplemental
accident, health and life insurance; credit life, accident and health insurance;
extended warranty products, and select property and casualty insurance products
and services.
Our clients include corporations and businesses, insurance companies, professional
organizations, independent agents and brokers, governments, and other entities.
We also serve individuals through personal lines, affinity groups, and certain
specialty operations.
Competitive Conditions
We believe we are the second largest insurance broker worldwide based on total
revenues. The risk and insurance brokerage services business is highly competitive
and we compete with two other global brokers in addition to numerous specialist,
regional and local firms in almost every area of our business; insurance and
reinsurance companies that market and service their insurance products without
the assistance of brokers or agents; and with other businesses, including commercial
and investment banks, accounting firms and consultants that provide risk-related
services and products.
Our consulting business faces strong competition from other privately and publicly
held worldwide and national consulting companies, as well as regional and local
firms. Competitors include independent consulting firms and consulting organizations
affiliated with accounting, information
The accident and health insurance industry in the United States is highly diverse,
with more than 1,500 accident and health and life insurance companies competing
in various segments of the industry. We believe that competition in our accident,
health and life business is based on service, product features, price, commission
structure, financial strength, claims-paying ability ratings, name recognition
and new legislation or industry developments.
We believe that competition in our warranty, credit and specialty property
and casualty business is based on service, product features, price, commission
structure, financial strength, claims-paying ability, ratings and name recognition.
In our extended warranty business, we compete with a large number of insurance
companies and other financial services providers in addition to third-party
administrators, manufacturers and distributors.