Aon has announced the launch of its employee benefits (EB) cell captive facility, a move which the firm says is a “first-to-market innovation” that will transform how multinational companies manage risk and finance employee benefits.
The solution will integrate with Aon’s Risk Capital and Human Capital capabilities, offering an alternative risk transfer strategy, which they say will enable clients to self-insure employee benefits risks in a simplified manner.
Aon notes that while some traditional captives may be out of reach for some, due to the resources needed to integrate employee benefits, this new facility helps to resolve these challenges, providing a streamlined solution that allows businesses to retain the advantages of a captive structure without the administrative burden and high capital investment associated with traditional captives.
Michael Pedel, head of global benefits at Aon, says: “Multinational organisations need agile benefits strategies to keep their employees thriving and build a resilient workforce.
“By uniting our Risk Capital and Human Capital expertise, we are helping organisations make better decisions, enabling employers to enhance their benefits strategies while gaining greater control over costs and risk transfer mechanisms.”
Ciaran Healy, global captive leader for Commercial Risk Solutions at Aon, adds: “The rising costs of healthcare and employee benefits require businesses to think differently about how they manage risk.
“This facility provides an efficient and accessible way for organisations to leverage cell captives for employee benefits — an option that was previously unavailable to clients.”
