Core Insights - U.S. employer health care costs are projected to rise by 9.5 percent in 2026, exceeding $17,000 per employee, marking the third consecutive year of elevated health care cost trends near double digits [1][9]. Health Care Cost Drivers - The rise in chronic conditions, such as musculoskeletal and cardiovascular diseases, along with high-cost conditions like cancer, are primary drivers of escalating medical costs in the U.S. [2] - Increased spending on prescription drugs, particularly brand-name and specialty medications, is also contributing to rising costs, with a notable surge in demand for GLP-1 therapies for diabetes and obesity treatment [3]. Employer Strategies - Employers are expected to absorb the majority of health care cost increases, implementing strategies such as benefit design changes, increasing employee payroll contributions, and managing chronic conditions to mitigate rising expenditures [4][5]. - The average annual increase in employer costs from 2024 to 2025 is 7.2 percent, while employee premiums from paychecks are expected to rise by 4.7 percent [6]. Cost Sharing and Industry Variations - On average, employers cover about 81 percent of health care plan costs, with employees responsible for the remaining share [5]. - The technology and communications industry has the highest average employer cost increase at 8.8 percent, while the finance and insurance industry sees the highest average employee cost increase at 6.8 percent [7][8]. Future Projections - Employers are concerned that health care cost trends will remain elevated, with ongoing changes in the health care landscape making it less likely for costs to return to manageable levels [9]. - Aon's Health Price Transparency Analysis aims to provide employers with insights into provider pricing, enabling informed decisions regarding health plan expenditures [10]. Predictive Analytics - Aon's data indicates that 5 percent of members account for 60 percent of all medical and pharmacy spending, with over 50 percent of high-cost claimants being predictable [11]. - The Health Risk Analyzer tool helps employers forecast health care costs and claims risk with greater confidence, allowing for targeted cost management strategies [12].

Aon (AON) 2025 Capital Markets Day Summary Company Overview - **Company**: Aon - **Event**: 2025 Capital Markets Day - **Date**: June 09, 2025 Key Industry Insights - The insurance and risk management industry is valued at approximately **$4.6 trillion** in premiums and **$56.5 trillion** in assets, indicating significant growth potential [16][17] - Global insured losses from natural catastrophes amount to **$145 billion**, highlighting the industry's resilience and demand [18] - Health costs in the U.S. represent **20%** of GDP, emphasizing the importance of health management services [18] - The retirement sector shows that **80%** of individuals are concerned about their retirement preparedness [19] - Over a **20-year period**, the broker index has consistently outperformed the S&P 500, demonstrating the industry's resilience across various economic conditions [20][21] Core Company Strategies - **Aon United Strategy**: Aon aims to address complex client needs and drive sustainable growth through a unified platform [4][10] - **3x3 Plan**: Aon is operationalizing its strategy with a focus on client-centric services, aiming for mid-single-digit organic growth, annual margin improvement, and double-digit free cash flow [9][15][29] - **Investment in Talent**: Aon has made significant talent hires and sector investments to enhance its capabilities [12][29] Financial Performance - Over the past **10 years**, Aon has achieved: - **5%** organic revenue growth - **1,300 basis points** adjusted margin expansion - **11%** adjusted EPS growth - **12%** free cash flow per share growth - **15%** total return to shareholders [28][29] Client Demand and Megatrends - Aon identified four megatrends affecting clients globally: trade, technology, weather, and workforce [35] - Clients are increasingly concerned about supply chain volatility, technological changes, climate impacts, and workforce management [37][40] - The interconnectivity of these megatrends creates operational challenges for clients, necessitating integrated solutions [45][49] Aon United and Innovation - Aon United serves as a differentiator, allowing for integrated solutions backed by advanced data and analytics [95][102] - The **Better Decisions Lab** showcases innovative capabilities and tools that enhance client service [5][78] - Aon Business Services (ABS) is a critical component, providing operational excellence and efficiency [99][105] Employee Engagement and Culture - Aon reports an **86%** employee engagement rate, indicating a strong organizational culture and alignment with the company's mission [109] Future Outlook - Aon is committed to leveraging its strong foundation and the 3x3 plan to accelerate growth and enhance client service [110] - The company aims to capture new demand in emerging areas such as cyber risk management, with a market potential of **$15 billion** [80] Conclusion - Aon is positioned to capitalize on a growing and resilient industry, with a strong focus on client needs, innovative solutions, and a commitment to long-term shareholder value creation [10][82]

Core Insights - Aon plc has identified a significant opportunity to reduce healthcare costs and improve workforce health through a comprehensive obesity management program that incorporates GLP-1 medications [1][4][5] - The company has launched its own GLP-1 weight management program for U.S. employees, combining affordable treatment access with virtual support and adherence tools [3][9] Health Data Analysis - Aon's analysis utilized data from over 50 million commercially insured lives, including 139,000 GLP-1 users from 2022-2024, to quantify the economic impact of GLP-1 medications [5][6] - The analysis revealed that GLP-1 users experienced a 44% reduction in the risk of hospitalizations due to major adverse cardiovascular events over 24 months [6] Economic Impact - The initial cost increase associated with GLP-1 medications was followed by a significant reduction in medical spend growth, with a seven-percentage point improvement observed in the second year for GLP-1 users [6] - Aon emphasized that addressing obesity not only presents a public health opportunity but also serves as an economic imperative, with obesity costing the U.S. economy up to $1.72 trillion annually [4] Program Implementation - Aon's GLP-1 weight management program aims to de-stigmatize obesity treatment and provide subsidized access to GLP-1 medications for its U.S. workforce [9][10] - The program includes AI-driven wellness tools, at-home blood tests, and virtual check-ins to enhance adherence and support sustainable health outcomes [9] Future Directions - Aon plans to advance analytics to support better decision-making regarding GLP-1 adoption and its long-term business impact [10] - The company aims to revolutionize chronic condition prevention and redefine workforce health investment, setting a new industry benchmark [10]