The tool tracks exposures across operators, geographies and interconnected infrastructure.
Aon has launched a tool to help insurers assess their exposure to data centres and other digital infrastructure and identify concentration risks across their portfolios.
The Digital Infrastructure Risk Aggregator (DIRA) combines exposure analysis, market data and risk capital expertise to give insurers a portfolio-level view of digital infrastructure risks.
It can track exposures across assets, operators, geographies and interconnected infrastructure.
The tool links digital infrastructure locations with Aon’s Risk Analytics Platform to provide location-level exposure data across property portfolios.
This is intended to help insurers manage accumulations internally and support discussions on reinsurance placements.
DIRA is available on a quarterly or annual basis, allowing insurers to monitor changes in their portfolios as investment in data centres and other digital infrastructure grows.
The tool is designed for chief underwriting officers, exposure management teams, reinsurance buyers and catastrophe modelling teams.
It can identify areas where an insurer may be over- or under-exposed relative to the wider market and highlight assets, campuses or operators that could increase portfolio volatility or affect earnings and reinsurance needs.
For example, DIRA can flag a data-centre campus with insured values above market benchmarks and show how the exposure affects an insurer’s overall accumulation.
Insurers can then consider measures such as facultative reinsurance or changes to portfolio risk appetite.
“Digital infrastructure is creating meaningful opportunity for insurers, but profitable growth depends on the ability to understand exposure at a portfolio level and translate those insights into action,” said Dave Nicholson, global client leader, reinsurance, Aon.
Dan Raizman, global head of client engagement, climate risk advisory at Aon, said the tool provides insurers with greater consistency and transparency in assessing digital infrastructure risk.