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Aon launches program to ease international access to Lloyd's

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Aon launches program to ease international access to Lloyd's

Aon P.L.C. on Wednesday announced two broking initiatives aimed at increasing retail and wholesale buyers' access to Lloyd's.

The London-based brokerage announced plans for a distribution channel intended to give buyers easier access to Lloyd's capacity by connecting syndicates at Lloyd's with Aon's global retail network.

The distribution channel, Aon Carrier Link, will open in the first quarter of 2016, Aon said in a statement.

Steve McGill, group president of Aon P.L.C. and chairman and CEO of Aon Risk Solutions, said the channel would use data and analytics to “effectively export the underwriting appetite of Lloyd's syndicates to clients.”

He said Aon Carrier Link would give buyers greater choice and increase the efficiency of placing their largest and most complex risks.

Traditionally, international business is placed in Lloyd's through Lloyd's brokers based in London who negotiate directly with Lloyd's underwriters.

The channel will use new technology to simplifyaccess to Lloyd's and establish direct links with Lloyd's capacity, a spokeswoman for Aon said.

This likely will result in business previously placed in international insurance markets being underwritten at Lloyd's, she said.

In international markets where Lloyd's has licenses, Aon brokers will be able to offer buyers more efficient access to Lloyd's capacity, she said.

Aon also announced a new treaty-based wholesale approach that it said draws on best practices from portfolio broking and underwriting common in the reinsurance market.

Under that initiative, certain Lloyd's insurers, led by XL Catlin, will be able to offer a 20% line to Aon's wholesale client base, across multiple classes of business, with some exceptions.

“This new offering creates pre-secured, co-insurance capacity,” and will be available to “clients with eligible placements via Aon's Global Broking Centre in London” on January 1, 2016, Aon said.

Earlier this year, Berkshire Hathaway Inc. announced that effective January 2016 it would pull out of a broking facility established by Aon that also offered pre-secured capacity whereby 7.5% of all premiums placed in Lloyd's by Aon are underwritten by Berkshire Hathaway.

The most recent plans were announced to Lloyd's managing agents and syndicates at a briefing at Aon's London headquarters Wednesday hosted by Mr. McGill and attended by Lloyd's CEO Inga Beale as well as representatives from Lloyd's syndicates.

The announcement was the first in a series of planned briefings to Lloyd's syndicates, Aon said.