Released on: December 1, 2007, 1:07 am

Press Release Author: Reuben Aitchison

Industry:

Press Release Summary: Contrary to popular belief, the captive market remains
underdeveloped with over half (53%) of the current global 1500 companies not
currently owning a captive, according to the 'Global 1500: A Captive Insight' report
released today by Aon.

Press Release Body: Contrary to popular belief, the captive market remains
underdeveloped with over half (53%) of the current global 1500 companies not
currently owning a captive, according to the 'Global 1500: A Captive Insight' report
released today by Aon.

The outcome is that insurance buyers within the world's largest companies are
failing to achieve a better quality of cover as well as cost savings of typically
10-15%, through economies of scale, efficient use of capital, leverage and more
efficient use of senior management time.

According to Aon research, the sectors missing an opportunity include manufacturing
and communications, where 55% and 62% respectively do not have captives. Even
sectors that have greater take-up still show room for growth. For example, 44% of
the largest financial and insurance companies and 39% of mining companies still do
not use captives.

Potential captive growth is greatest in Asia where only 17% of Asian G1500 companies
have captives; in Japan take-up is just 14%. Even in more mature markets such as
the US, 42% of the largest companies still do not own a captive.

Although the report found strong growth in business for US domiciles, in particular
Vermont, Bermuda remains the most preferred domicile, with over a quarter (26%) of
all registered G1500 captives. In the same way that US companies favour US
domiciles, there is an increasing trend for Asia Pacific companies to prefer local
domiciles - half of the Asia Pacific captives formed over the last five years were
locally domiciled, compared to just 33% in the previous five-year period.

Andrew Tunnicliffe, Group Managing Director, Business Development, Aon Global Risk
Consulting, comments: "The report shows that growth in the captive market is not
slowing down - there is still a long way to go before companies are truly managing
risk effectively. The message to some specific sectors such as financial services,
communications and retail trade is clear - you are missing out on significant cost
savings by not using captives as part of your risk management programme.

The captive market is set to grow further. G1500 companies currently have 1,061
captives, as the benefits of captives become clear, I believe that this figure will
rise to at least 1,200 by the year 2010."

Additional Aon G1500 Captive Report findings:

Offshore vs onshore - US companies take different approach to European counterparts.

The gap between onshore and offshore captive growth in the Americas has narrowed and
this trend will continue - around two-thirds of US captives established in the last
five years were based in onshore domiciles due to greater corporate governance
requirements. In Europe, whilst onshore domiciles continue to grow, the popularity
of offshore has not diminished.Aon UK is ranked by A.M. Best as the number one
global insurance brokerage based on brokerage revenues and voted best insurance
intermediary, offering classic car insurance, high value home insurance, entertainment
and media insurance and construction site insurance.


EU Passporting

Out of the 140 captives domiciled in the more established direct writing locations
in Europe, 50 are owned by companies outside the Single Market, highlighting that
many may be taking advantage of EU passporting opportunities.

Aon UK is ranked by A.M. Best as the number one global insurance brokerage based on
brokerage revenues and voted best insurance intermediary, offering classic car
insurance, high
value home contents insurance, entertainment and media insurance and
construction site insurance.


Web Site:
http://www.commercialservices.aon.co.uk/commercialservices/microsites/entertainment/


Contact Details: directory@vandelay.co.uk