Captive Management

Captive Services are delivered by Aon Global Insurance Managers (AGIM) - the world's leader in captive management, with roots dating back to the beginning of the captive movement in the 1960's.

A captive is an insurance company set up by its owners primarily to insure its own specific risks. Because the conventional insurance marketplace has not responded to the needs of businesses requiring innovative solutions for large or complex risks, organisations that venture into this area have much to gain. Captive owners benefit from reduced insurance costs, access to reinsurers, an ability to insure the ‘uninsurable’ and improved cover and control. In addition, the captive approach may offer tax advantages.

The decision to establish a captive requires detailed consideration and the long-term commitment of management in order to maximise the benefits of captive ownership.  There is no doubt that organisations that have taken a considered, strategic approach have reaped considerable rewards in the form of reduced costs and improved coverage. Many international companies have found that an insurance subsidiary is the best means of creating and administering a global risk management programme.

The minimum level of risk retention or transfer needed to justify the frictional costs of running an insurance subsidiary means that captives are not a viable option for smaller organisations. However, demand from such companies has resulted in the development of techniques such as protected cell accounts or “rent-a-captive” services that provide lower fixed cost alternatives and facilitate access to reinsurance and specialist risk-bearers.

In Dublin, Aon's captive management operation is home to around 65 captive insurance and reinsurance companies, whose parents are typically located outside Ireland. Aon is the largest manager in Ireland and the dedicated team of c. 60 professionals, based in The Metropolitan Building in D1, has unrivalled experience in this complex field.