Alternative Risk Transfer

Aon Risk Consulting has the capability to assist clients with Alternative Risk Transfer (“ART”) solutions to address risks faced by your organisation.

ART solutions are characterised by their tailor-made structures which are specifically designed for the client's needs. Aon Risk Consulting (“ARC”) has the capacity to assist clients with the formation and management of these solutions. These solutions include:


A wholly owned (licensed) insurance company, set up by its parent(s), in order to carry on insurance, generally to underwrite its parents' own risks. The Captive can however, underwrite third party risks such as consumer protection insurance products, funeral benefits insurance, etc.

Cell Captive

To some clients, procuring a full insurance company license may not be an option as there may be strategic restrictions. A Cell Captive provides this flexibility. Aon Risk Consulting will negotiate with an established insurance company to allow clients, through a participation agreement, to access a certain portion of that registered insurer's license to conduct insurance activities.

Contingency Policy

A contingency policy issued by an insurance company, is a normal insurance policy that generally acts as a primary policy and is designed to blend with a conventional insurance programme and addresses the risk of having a gap in cover. The intention of this policy is to enable the insured to create insurance capacity (reserves) over a number of years so as to be able to retain more risks or higher deductibles. The client is rewarded for a favourable claims experience through an underwriting profit share arrangement.

Finite Programme

Also known as a spread-loss insurance policy, a Finite programme is a multi-year policy with an aggregate limit set over the term (generally three to five year term) of the policy. The full limit is available on day one of the policy should a claim be incurred. The policy also has an Experience Account Balance (EAB) which is used to determine the performance bonus payable at the end of the term of the Policy.

The success of a robust ART structure relies on the effectiveness of the support functions of that structure. Aon Risk Consulting ensures that sufficient support is provided for insurance and risk issues so that you can concentrate on your core activities.

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