31 October 2022Asia analysis

Aon: Asian captives market predicted to expand

Aon is expecting an increase in total captive formations by the end of 2022, with more captives being created in the Asian market.

In a new report, entitled ‘Managing Risk In Connected Asia - 2022 Asia Market Review’, Aon said that live enquiries from organisations about forming a captive or protected cell are projected to increase.

Captive owners will reassess their programmes to optimise risk retention and return on investment, Aon said, and the general upward mergers and acquisitions (M&A) trend will lead to risk finance optimisation reviews for risk retention and captives.

As a result the report said that based on current activity, more captives will be formed in 2022 to help organisations manage their Total Cost of Insured Risk.

According to Aon directors and officers insurance remains a concern but with planning, innovation and due diligence, clients utilised captives to complete placements, especially Sides B and C. In addition. More clients considered including employee benefits by self-insuring through captives.

“Asia is an immature captive market and we expect it to grow,” the report concluded.