Aon updates Climate Risk Monitor
Aon has updated its Climate Risk Monitor (CRM), its platform designed to help clients understand, quantify and act on evolving physical climate risk. CRM 3.0 introduces new Heat Stress analytics that capture how temperature, humidity and exposure can affect businesses and communities, including health outcomes as well as potential economic and productivity impacts of warming.
The update also adds Cooling Demand, reflecting the growing importance of cooling as both a response to heat stress and a potential contributor to emissions if energy use is not well managed. CRM 3.0 also incorporates an updated view of drought and water stress, quantifying how changes in precipitation and warmer temperatures together drive future drought conditions. Aon said that these additions help clients explore the interplay between climate hazards, operational resilience and future emissions pathways, particularly given the rapid growth of data centres and associated cooling demands linked to AI.
Liz Henderson, head of climate risk advisory for Aon, said: “As outlined in our 2026 Climate and Catastrophe Insight report, physical climate risk continues to evolve, bringing implications for communities, policymakers and the insurance market. Heat stress, rising cooling demand and increased water usage are quickly becoming everyday challenges for businesses and communities – affecting people, energy systems and IT infrastructure – especially as more data centres are built with the increased use of AI. By quantifying these impacts, organisations can better protect uptime, manage costs and build resilience for a hotter, more demanding future.”
Further CRM 3.0 updates include:
• More actionable hazard intelligence – the update delivers higher-resolution peril data to support location-specific insights and more practical risk conversations across assets and portfolios. It strengthens its historical view by capturing actual extreme weather observations rather than a modelled reconstruction of the past, resulting in analyses that better reflect actual experience.
• Modern baselines and improved model handling – CRM’s historical baseline incorporates near-present-day weather data, while its forward-looking view includes bias correction to remove systematic distortions in climate model outputs using observed climate as a reference – enabling more consistent comparisons between present conditions and future projections.
• More efficient user experience – clients can now upload their data directly into CRM 3.0, reducing reliance on a consultant-led workflow and making it easier to iterate, refresh exposures and expand analyses across business units over time.
• Global hazard mapping – clients can also view global maps of hazard scores across a variety of perils. The visualisations provide a globally consistent granular view of evolving hazard levels as the climate changes out to the end of the century.
Aon said that CRM 3.0 assists insurers, reinsurers and other users – such as governmental organisations – to make better decisions around risk selection and develop more informed strategies around pricing and reinsurance renewals due to its more comprehensive risk quantification. It forms part of Aon’s wide range of solutions that help (re)insurers to assess and manage natural catastrophe risk: including the firm’s Impact Forecasting suite of global catastrophe models, its team of worldwide experts in enterprise risk management, engineering, casualty and transition risk, and its 14 global academic collaborations.
Aon’s 2026 Climate and Catastrophe Insight report is available here
Did you get value from this story? Sign up to our free daily newsletters and get stories like this sent straight to your inbox.
