PERIL, the new property group captive in Cayman, established by Aon and HDI Global can be a “unique” solution for insurance buyers, according to Jason Tyng, vice president of the US Captive Solutions Group at HDI Global.
Captive Intelligence revealed last week that Property Engineered Risk Insurance Limited (PERIL) had received a conditional licence from the Cayman Island Monetary Authority (CIMA) and had 10 founding members in place.
The captive will be managed by Aon and fronted by HDI Global.
Speaking on the latest episode of the Global Captive Podcast Tyng said a number of the founding members and anticipated future members were already familiarised with group captives.
“The companies that we’re targeting, they’re very interested in a group captive,” he said.
“They have been participating in a group captive before or they understand the concept. The trick here is not necessarily the exposure or the company, but it is more the mindset.
“We’re looking for the right kind of people that are looking to join and be participants in their risk transfer. I do think that there is a huge opportunity here for us to create something unique in the marketplace that will fill a void that a lot of clients have right now.”
Tracy Williams, managing director of group captive solutions at Aon, has led the project for the broker and said PERIL emerged as a consequence of middle market companies being hit hard by the challenging property market of recent years.
“Our clients are asking for it,” Williams said when asked why Aon saw the need for such a solution.
“The recent hard market for property risk was a real eye-opener for well-run middle market companies, who suddenly found themselves facing skyrocketing insurance premiums, onerous coverage restrictions, and more stringent engineering requirements from some carriers.
“Especially for companies in higher risk industries, it was even worse, with many traditional insurance companies pulling out of the market altogether. This really created a competitive disadvantage for a lot of companies compared to larger corporations, which can leverage their size and geographic diversity to secure better terms.
“And even though the current property market has stabilized somewhat, our clients have not forgotten how unpredictable things were, and they’re really looking for more control and stability going forward.”
Listen to the full podcast discussion about the launch of PERIL here, or on any podcast app. Just search for ‘Global Captive Podcast’.
