Aon is an industry leader in delivering captive feasibility analyses, helping to convey to clients the value that a captive can deliver and supporting the business case for implementing such a vehicle.
A captive feasibility study provides the answers to key questions including can a captive deliver value; how should a captive be structured; what business should a captive write; where should it be located; and how should it be operated.
Aon has created an exciting new iPhone app which enables Aon colleagues and clients to navigate the initial questions to be answered to help determine if there is value to exploring a captive through a full feasibility study. This innovative new tool provides the mobile convenience of an App combined with the thought leadership and expertise of Aon.
The Aon Captivate App is a four stage assessment comprising the following:
1. Initial Feasibility Screening
• 10 questions help to identify whether a client has the critical mass, risk appetite and motivation to pursue a captive further.
2. Risk Management Benefit Assessment
• This stage highlights some of the benefits that are obtainable from a captive supported by client statistics from Aon’s captive client survey.
3. Captive Benchmarking
• The user’s data is compared to Aon’s Captive Benchmarking Survey which includes 1,000+ Aon-managed captive’s data. This stage enables clients to understand such things as why their industry peers have captives; what they are writing through their captives and domicile.
4. Cash-flow Efficiency
• Based on client specific criteria such as lines of insurance, loss picks and cost of capital the App will calculate the potential efficiency that a captive program might deliver over conventional self-insurance. Such efficiency may help clients justify the investment in establishing a captive.
The output is automatically summarized in a report and emailed to the user acting as a means to memorialize discussions and as a focal point for initial discussions with key stakeholders in the client organization.