Aon Forms Captive MGU

NU Online News Service, March 12, 10:38 a.m.EST?

Aon ARU group captive solutions are aimed principally at privatecompanies or closely held public companies that have abetter-than-average loss experience, solid financial condition, andpay multiline premium between $200,000 and $2 million, theChicago-based insurance broker said.

Working through independent agents and brokers, the captiveswould be all member-owned group captives, not single-parent orrent-a-captive programs.

Aon ARU coverages can include primary casualty lines ofbusiness, workers' compensation, general and product liability, andcommercial auto. Other coverages, such as commercial property andbusiness interruption and directors & officers, can also beconsidered, typically after casualty coverages are established, Aonsaid.

Group captive formation requirements include six to 12 qualifiedinsureds with good historical loss and exposure information, whichgenerate $5 million or more in premium.

Christopher R. Payne, Aon ARU president, noted that a captivesolution has potential application in a variety of businesssegments, including transportation, manufacturing and distribution,agribusiness, food wholesalers, equipment dealers, andconstruction.