Captive Insurance
What is a Captive Insurance Company?
A captive is a licensed insurance or reinsurance company owned by a parent organization that insures or reinsures the risks of its parent and associated companies. Once set up, a captive works in the same way as a commercial insurance company.
Why Do Organizations Use Captives?
Traditional insurance costs have been driven upward in recent years due to challenging insurance market conditions caused by insurer losses, changing exposures and reinsurance pressures. Certain risks, including property, general liability and cyber, have become more expensive or difficult to insure. As a result, some organizations have turned to alternative risk financing options such as captives or protected cell companies to:
- Fund non-insurable risks
- Retain more risk through a formal mechanism
- Stabilize risk financing costs over time and navigate insurance market volatility
- Gain direct access to the reinsurance market
- Create a strong governance environment that promotes better risk management behaviors
We work with organizations to develop risk financing strategies that efficiently balance risk retention and risk transfer.
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Structuring Solutions
Innovative structuring solutions, including fronting and access to capital solutions
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Risk Finance Optimization
Risk finance optimization, captive program design and capital efficiency optimization
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Strategy Development
Captive strategy development
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Feasibility Studies
Captive feasibility studies
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Captive Solutions
Innovative captive solutions for new and emerging risks
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De-Risking
De-risking solutions
Why Aon?
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Full Range of Management Services
We also offer a full range of management services covering all key functions and supports:
- Underwriting and claims support
- Accounting, finance and treasury support
- Actuarial services
- Captive and risk finance strategy support
- Risk management, compliance and governance support
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Global Reach
Our 550-strong team of captive and insurance management specialists has a truly global reach, operating in 48 domiciles.
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Captive Benchmarking
As a leading captive and insurance management service provider, we analyze data from over 1,300 insurance entities to understand trends and ensure our clients are better advised. We can compare with peer groups by size, geography or industry.
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Bespoke Insurance Structures
We use our unique platforms and tools to design, build and maintain innovative insurance structures and risk financing programs that solve our clients’ issues.
550+
Our 550-strong team of captive and insurance management specialists has a global reach, operating in 48 domiciles.
Aon's Experience with Captives
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1,004
captives under Aon's management
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$65
billion in managed premium
