Three new facilities have been released by Aon designed to help captive insurers and corporates reduce their risk exposure:
• Captive Reinsurance Stop-Loss facility — provides competitive risk transfer options across multiple lines of business, allowing captives to cap their total aggregate retained risk exposure while providing up to £16.5m market capacity.
• Primary Property Damage and Business Interruption Package — bolsters capacity at a primary level. It provides a block of quality rated capacity with in-built critical natural catastrophe limits. There is up to £37.5m capacity with a flexible attachment point.
• Excess Property Damage and Business Interruption Line Slip — gives captives and corporates the peace of mind of knowing there is capacity available of up to £155m. The minimum attachment point is £25m.
Ken MacDonald, chief executive of Aon's large account unit, Risk Management Solutions (RMS), said: “The creation of these innovative facilities is evidence of our determination to create solutions and services that deliver distinct value. These facilities will help reduce volatility and cost, and enable our clients to better manage their risk exposures."
The head of RMS' risk transfer team, Robert Brown, added: “Increased volatility in the insurance market is a persistent headache for the buyer. With another lively hurricane season predicted there is no saying what will happen to rates and capacity later in the year. These products are designed to keep the client in control of their insurance buying and give them the certainty they need. This is all about market making not market placing; our clients are demanding these solutions.”
Stephen Cross, chief executive of Aon Captive Services Group added: “From a captive perspective, managing cost, volatility and regulatory capital, especially across multiple lines of retained risk, is absolutely critical. These facilities bring to the captive market something that is new and innovative and addresses a very real need.”
