Aon to launch UK captive management company
Aon has announced that it will launch a new UK-domiciled captive management company in preparation for new regulations allowing their domicile in the UK. This follows confirmation from the UK Government that it is to become a globally competitive home for captive insurance following the implementation of a new regulatory framework.
In the annual Mansion House Speech, UK Chancellor of the Exchequer Rachel Reeves is to set out plans for the UK’s financial regulator to create a market for the creation and management of Captives in the UK – making the UK a strong alternative domicile to other jurisdictions where captives are available (including Vermont and other US States, the Cayman Islands, Bermuda and Guernsey).
Ciaran Healy, global captives leader at Aon, said: “We are fully supportive of the Government’s announcement which will position the UK firmly on the global captive map. For a long time, Captives have played a central role for organisations looking to optimise their overall risk financing strategy and the numbers of captives globally has continued to grow since the concept was developed in the 1960s.
‘’The UK is already home to the world’s leading insurance marketplace in London and it’s only natural that it should also be a competing jurisdiction for captives. The UK has the expertise, reputation and drive for innovation that will ensure success – and here at Aon we are already very advanced in our preparation to launch a new UK-based Captive Management Company.
When the new regulations come into force, Aon’s new UK captive management company will provide clients with more choice as to where to domicile their captive insurance company and in turn how best to structure their risk finance programmes.
“The right regulations would result in two things’’, continued Hogg. “Firstly, new formations for UK organisations that previously hadn’t considered forming a captive, but secondly, it could also attract existing captives from other jurisdictions outside of the UK to consider re-domiciling to here.”
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