Global insurance and reinsurance broker Aon is establishing a UK-based captive management company, a strategic move made in direct anticipation of the new regulations designed to allow captives to be domiciled within the UK, it says. Speaking to Captive Insurance Times, Ciaran Healy, global captives leader at Aon, confirms that the process is already underway. Healy states that Aon will have the "foundations for our UK based captive management entity in place over the course of the coming weeks." This rapid progression underscores Aon's commitment to supporting clients in leveraging the UK's evolving captive landscape. Beyond simply providing an additional domicile, Aon sees distinct advantages in the UK operation. Healy highlights the "large pool of available specialist insurance talent ready to service the UK captive industry," combined with London's "close physical proximity to one of the world’s leading insurance markets". This unique combination, he suggests, could provide the UK with a significant "unique selling position" in the global captive market. Aon believes the new UK regulatory framework's approach to proportionality will be crucial for its success. Healy emphasises that it is "the key ingredient for a successful and competitive regime" and that it will be vital for the UK to "implement regulation which recognises the unique relationship between captive, captive owner and insured". He also notes that "access to, and ease of communications with, the regulator will also likely be a key consideration for clients and prospects". Aon is encouraged by the government's commitment to a "genuinely competitive, bespoke captive insurance framework," which signals a clear understanding of potential captive users' needs. Aon plans to leverage London's robust insurance marketplace to enhance the value of UK-domiciled captives. Healy explains that Aon will offer clients "a holistic offering to support a successful captive strategy," encompassing advisory, management, and access to risk capital from all available sources. He adds that the presence of UK-based captives "will almost certainly have the ability to leverage the strength of the insurance market locally, but also have access to the global markets via the captive". This integrated approach aims to enable captive owners to maximise their risk capital options and ensure capital is matched to risk effectively.
