Giving You Everything You Need to Know
As insurance and risk markets harden and more constraints are placed on resources, you may wish to include a captive in your company's risk-financing and -management activities. Is establishing your own insurance subsidiary the most suitable tool for financing company risk? How can you find out? Ask Aon to conduct a captive feasibility study. Aon has extensive experience in conducting captive feasibility studies for both corporate and government entities across a range of traditional and nontraditional insurable-risk exposures.

With an Aon captive feasibility study you receive:

• An understanding of what makes captives successful risk-financing tools
• Consultants with hands-on experience on a global scale
• Access to our collective experience of managing over 1000 captives globally
• Independent "best advice"; if we lack the most appropriate expertise, we source it in the marketplace
• Maximum value from your captive

A captive feasibility study conducted by Aon:

• Identifies issues and reviews your current insurance arrangements
• Examines reasons for forming a captive -- What are your costs and benefits?
• Reviews all of your classes of general insurance and risk-transfer arrangements with traditional insurers -- In the long term, is keeping the current arrangements or forming a captive most valid?
• Looks at the structure of your captive
• Reviews the capital requirements, structure, ownership, management and financial objectives of the captive
• Conducts a risk-retention analysis that also incorporates our capital based risk modeling process -- What is the optimum risk retention structure for your captive, and how much retained risk is your company willing to accept?
• Projects a five-year budget and return-on-equity analysis -- What is the financial strength of the captive?
• Investigates legal issues
• Reviews regulatory requirements for establishing your captive in the chosen domicile
• Compares appropriate countries as a domicile for your captive -- Is Singapore, Hong Kong, Bermuda, Australia or the Cayman Islands a more suitable location?
• Makes recommendations for your captive
• Recommends the structure of a long-term reinsurance program
• Suggests how your captive's service providers should supply services and how the services should be integrated into company operations
• Prepares a timeline listing key tasks in establishing your captive.