Profile of Aon Consulting Services

Aon’s consulting division competes in a landscape that includes other major firms specializing in risk advisory, human capital consulting, and reinsurance brokerage. Willis Towers Watson (WTW) and Mercer are two of the most notable competitors, alongside the broader Marsh McLennan group and emerging players like Gallagher in certain segments.

• Willis Towers Watson (WTW): WTW (formed by the 2016 merger of Willis Group and Towers Watson) is perhaps Aon’s closest peer, given its mix of insurance brokerage and HR consulting. In terms of size, WTW’s total revenue was about $9.5 billion in 2023 – considerably smaller than Aon’s $15+ billion, but WTW’s “Human Capital & Benefits” and “Risk & Broking” segments mirror many of Aon’s service areas. Both Aon and WTW offer risk management consulting to corporate clients and brokerage of insurance, and both have large human capital consulting practices (Aon via the former Hewitt business, WTW via the former Towers Perrin/Watson Wyatt legacy). In practice, the two firms often go head-to-head for clients seeking benefits consulting, pension actuarial services, or insurance broking. A key difference emerged in 2021: Aon attempted to merge with WTW in a $30 billion deal, which would have created the world’s largest insurance and consulting firm, but the plan was scuttled by regulators. As part of the regulatory process, WTW agreed to sell its reinsurance brokerage unit (Willis Re) to Arthur J. Gallagher & Co., effectively exiting the reinsurance consulting arena. That sale was completed in late 2021, with Willis Re rebranded as Gallagher Re. As a result, in reinsurance consulting and brokerage, Aon now stands with Marsh McLennan’s Guy Carpenter and Gallagher as the top global players, while WTW no longer has a direct presence in that specific niche. In risk advisory and insurance broking, Aon and WTW remain direct competitors – both are ranked among the world’s largest insurance brokers (Marsh, Aon, and WTW have traditionally been the top three). Aon is currently the second-largest globally, while WTW is third by brokerage revenues. In human capital consulting, Aon and WTW are also closely matched. WTW’s “Health, Wealth & Career” segment provides benefits consulting and HR advisory similar to Aon’s offerings (retirement actuarial, compensation, etc.). Both firms serve large multinational clients in this space and are considered part of the “Big Three” of HR consulting, along with Mercer. It’s worth noting that the attempted Aon-WTW merger itself underscored how complementary these firms are; Aon was willing to acquire WTW to bolster its talent and rewards consulting and strengthen its position against Marsh McLennan. Even after the merger’s collapse, Aon and WTW continue to vie for the same pool of clients with a relatively similar menu of services, though Aon’s greater scale and integrated structure (Aon United) is a differentiator that it emphasizes in competition.
• Mercer (Marsh McLennan): Mercer is the HR consulting arm of Marsh & McLennan Companies (MMC) and a major competitor to Aon in human capital and investment consulting. Mercer specializes in employee benefits consulting, talent strategy, retirement consulting, and investment advisory – many of the same domains as Aon’s people advisory business. Mercer’s revenues were about $5.2 billion in 2021, and it has over 25,000 employees globally, making it slightly smaller than Aon’s consulting operations in headcount but still a formidable player. In fact, Mercer, Aon (Hewitt), and Towers Watson historically formed the top tier of benefits consulting firms servicing large employers. Post-2010, Aon (with Hewitt) and Mercer have gone back and forth as the world’s largest HR consultancy. Mercer benefits from being part of MMC’s portfolio – it can partner with Marsh (insurance brokerage) and Guy Carpenter (reinsurance) to offer clients a full spectrum of risk and people solutions, similar to how Aon integrates its divisions. For example, Marsh McLennan’s combined annual revenue is around $20 billion, which includes Mercer’s consulting as well as Marsh’s risk services and Guy Carpenter’s reinsurance operations. In competitive bids, Mercer often goes up against Aon for projects like pension plan advising, actuarial valuations, compensation benchmarking, and benefits outsourcing (Mercer has its own outsourcing services, whereas Aon sold its outsourcing unit in 2017 – see below). Mercer’s strengths include its investment consulting (it advises on hundreds of billions in assets) and its presence in health benefits consulting, while Aon’s strengths include its broader risk consulting and insurance linkage and the data/analytics from its global client base. Both firms are global, but Aon has a presence in slightly more countries (120 vs Mercer’s ~130 countries served via 43 country offices according to Mercer). Essentially, Mercer is Aon’s chief rival in the human capital consulting arena, and both face pressure from emerging competitors like the Big Four accounting firms, which have been expanding their HR advisory practices.
• Other Firms (Risk Advisory and Reinsurance): In the pure risk advisory and insurance consulting domain, Marsh & McLennan is Aon’s primary competitor via its Marsh brokerage unit and the analytical services Marsh offers to clients (e.g. Marsh Risk Consulting, which parallels Aon’s risk consulting). Marsh is the world’s largest insurance broker (with over $10 billion in risk segment revenue), giving it a scale edge, but Aon’s risk consulting is often cited as very strong, especially in areas like captive insurance management and enterprise risk management. Additionally, Guy Carpenter, part of Marsh McLennan, is the second-largest reinsurance broker after Aon and competes with Aon’s Reinsurance Solutions in providing reinsurance placement and advisory services to insurance companies. The third major reinsurance intermediary is now Gallagher Re (after acquiring Willis Re in 2021), so Aon’s reinsurance consulting also competes with Gallagher’s growing reinsurance business. In the broader management consulting and risk advisory space, Aon also faces competition from the Big Four firms (Deloitte, PwC, KPMG, EY) and specialist consultancies. For example, Big Four firms have practices in insurance consulting, actuarial services, and human capital (especially Deloitte and PwC in HR consulting) that can overlap with Aon’s offerings. Similarly, boutique actuarial consulting firms (like Milliman or Segal) compete in retirement consulting, and boutique risk consultants may compete in areas like cybersecurity or risk engineering. However, few can match Aon’s combined scope in both risk and people advisory. One industry analyst described Aon’s position as providing “a broad range of risk, retirement and health solutions” globally, whereas rivals often specialize in one of those areas. In summary, Aon’s consulting division holds a top-tier position: it is generally ranked first or second worldwide in risk and reinsurance consulting, and in the top three in human capital consulting (alongside Mercer and WTW). The competitive dynamic is intense, but Aon leverages its integrated structure and analytics (e.g. its extensive insurance data and compensation databases) as a selling point to differentiate from standalone consulting firms.

Career progression within Aon’s consulting business is similar to the model at many consulting and professional services firms, albeit with some unique title nomenclature inherited from the Aon Hewitt side. New graduates or campus hires typically join at an analyst level, then move up through consultant ranks to senior consultant and management roles. For example, in Aon’s human capital consulting track, a typical progression would be: Analyst → Consultant → Senior Consultant → Director/Partner.

According to an Aon Hewitt career path guide, a Human Resource Analyst (entry-level) supports data analysis and basic client deliverables; after a few years they can advance to Human Resource Consultant, taking on client-facing projects and strategy implementation. With further experience, one can be promoted to Senior Consultant, leading projects and managing client relationships. The next step is often a Director or Partner role, where the individual oversees multiple projects or accounts and takes on business development responsibilities. A similar ladder exists in Aon’s actuarial consulting practice: Actuarial Analyst → Actuarial Consultant → Senior Actuary → Actuarial Director, corresponding to increasing levels of responsibility and expertise (from performing technical analyses to leading teams and advising on strategy).

In practice, Aon uses a mix of corporate titles and consulting titles. Many client-facing consulting leaders carry the title “Partner” or “Associate Partner”, especially those originating from the Hewitt organization. These titles are roughly equivalent to “Principal” or “Partner” in other consulting firms – leadership roles responsible for major client engagements and practice areas. For instance, Aon posts job roles such as “Associate Partner” in its consulting groups, indicating a senior position likely just below a full Partner. The promotion timeline at Aon’s consulting division can be somewhat flexible; it is not an “up-or-out” system as strict as a strategy consulting firm, but high performers can advance on a roughly 2-3 year timeline per level in early stages (analyst to consultant to senior consultant).

Later promotions to director or partner are contingent on demonstrated leadership, sales (bringing in business), and subject matter expertise. Aon has a robust career development framework: junior consultants often pursue professional certifications (e.g. actuaries earning their ASA/FSA, or rewards consultants obtaining CCP credentials) as they advance. The firm offers mentorship and training programs given its focus on “colleague development” as part of the Aon United culture. Geographically, career paths can be global as well – top performers might get opportunities to work abroad or lead multinational project teams, leveraging Aon’s worldwide presence. In summary, Aon’s consulting career structure allows one to grow from technical specialist roles into advisory leadership roles. The path is parallel to those at competitors like Mercer or Big Four: analysts learn the ropes, consultants build client advisory skills, and senior consultants/directors eventually assume account leadership.

The presence of Partner titles also signals that Aon rewards consultants who excel in building client relationships and generating business, much like a partnership model. (Indeed, Aon’s use of Partner terminology in its Human Capital practice signifies a role comparable to a partner/principal at a Big Four firm, even though Aon is corporately a public company.) The promotion criteria center on performance and contributions: delivering results for clients, developing junior staff, and contributing to revenue growth are key factors for advancement in Aon’s consulting ranks.

Some Aon alums, after leaving the firm, decide to become an independent consultant. Many of these join Umbrex. Clients seeking to engage an Aon alum can send an inquiry to [email protected].