Aon Outsourcing Non-Retail Claims; Sells Off Large Claim Division to Capita

February 16, 2006

As part of Aon Limited’s strategy to realign its London-based business more closely around client needs and core areas of expertise, Aon has announced that it will be outsourcing its client operations division.

In addition, the company has also announced the sale to Capita Insurance Services of its Aon Claims Management unit, which handles large-scale delegated claims authority business.

With 600 employees based primarily at Aon’s Romford offices, the client operations division looks after current and legacy insurance claims administration and processing, as well as accounting and settlement, for clients within Aon’s reinsurance division and its specialist and wholesale units (claims servicing within Aon’s retail insurance divisions will remain unaffected by these proposals).

Aon says that outsourcing these back office processing activities will enable it to improve both its client service and its operational efficiency.

“The industry we’re in is undergoing fundamental change and we must continue to adapt our business model to more closely reflect our clients’ needs. This change is all about providing a better service for our clients,” commented David Mead, Aon’s group operations director.

The company hopes to decide on an outsource service provider towards the end of the s econd quarter.

Aon has also announced the sale of its Aon Claims Management business, which consists of 103 employees, to Capita Insurance Services. This is no longer part of Aon’s core business offering and the company believes a more effective long-term solution lies in Capita providing the service.

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