Get 40% Off
🚀 Our AI Picked 6 Stocks that Jumped +25% in Q1. Which Picks Will Soar in Q2?Unlock full list

Aon's (AON) Solution to Help Businesses Check Cyber Threats

Published 12/03/2020, 12:40 AM
Updated 07/09/2023, 06:31 AM

Aon plc (NYSE:AON) AON recently introduced a digital cyber insurance solution, which is designed to help small and middle market businesses in purchasing and managing cyber and professional liability insurance through digital means.

The solution can be availed of by businesses coming under a wide range of sectors including retail, technology, professional services, manufacturing to name a few. Also, the solution is conceived mainly for any business which can produce annual revenues of up to $100 million.

Further, businesses utilizing this new solution can also seek assistance from an insurance specialist, who is entrusted with the responsibility to guide businesses on the application process and details of cyber insurance coverage.

Shares of this currently Zacks Rank #3 (Hold) company have gained 4.5% in a year compared with the industry’s growth of 7.5%.

Moreover, the launch of this solution seems to be time opportune amid the increased adoption of digital means, which was gradually gaining popularity and the COVID-19 pandemic further accelerated the trend. At a time when majority of the companies tend to digitize their processes, cyber risks, such as data breach, ransomware, contractual liability, media liability, business interruption and social engineering are likely to witness an uptick. Consequently, they pose a significant threat to small and middle market businesses, which are already grappling with dearth of technology and security resources.

We note that the access to cyber insurance coverage is further eased by the company’s user-friendly digital platform, which in turn, is propelled by its acquisition of CoverWallet this January that boasts a digital insurance platform. Notably, the motive behind the January buyout can be attributed to the mutual purpose of Aon and CoverWallet to cater to the needs of small and medium-sized businesses.

Furthermore, the new cyber insurance solution is an addition to the company’s suite of offerings to the middle market businesses. The latest strategic move also reinforces Aon’s commitment to meet the requirements of 30 million small and medium-sized U.S. businesses that it serves by constantly enhancing its solutions and services.

Additionally, Aon is making concerted efforts to enhance its line of risk solutions and services for countering the growing number of cyber risks. In February 2020, the company acquired Canadian-based Cytelligence, which is best known as a cyber security firm offering incident response advisory, digital forensic expertise, security consulting services and cyber security training for employees so that they can tighten the organizations’ security by offsetting cyber security threats.

Apart from rolling out a host of new solutions, we believe, the company’s expansion through buyouts and collaborations, and prudent shareholder-friendly moves via dividend hikes and buybacks bode well for the long haul.

Stocks to Consider

Some better-ranked stocks in the insurance space are eHealth, Inc. EHTH, Brown & Brown, Inc. BRO and Primerica (NYSE:PRI), Inc. PRI, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

eHealth, Brown & Brown and Primerica have a trailing four-quarter earnings surprise of 83.27%, 13.91% and 10.04% each, on average.

These Stocks Are Poised to Soar Past the Pandemic

The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.

Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.

See the 5 high-tech stocks now>>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Aon plc (AON): Free Stock Analysis Report

Brown & Brown, Inc. (BRO): Free Stock Analysis Report

Primerica, Inc. (PRI): Free Stock Analysis Report

eHealth, Inc. (EHTH): Free Stock Analysis Report

To read this article on click here.

Zacks Investment Research

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.