Due Diligence

Increased insurance costs post acquisition may become a significant consideration in determining the value of an acquisition. Aon’s due diligence will:

• Identify whether your insurance program covers the whole group of companies on a global basis or is fragmented in each territory thereby exposing the operation through inconsistent levels of cover
• Review the extent to which there is a need to insure risks currently uninsured, bearing in mind the future structure of the operation post-acquisition
• Benchmark the target companies’ insurance program against other operations with a similar risk profile based on our extensive global experience
• Assess whether the insurance premiums are equitable for the risk and provide estimated budgetary costing for an insurance program post completion
• Advise on the level of risk awareness within the target company including the insurance and risk management operating structure
• Provide recommendations as to the structure of the insurance program post completion including analysis of possible self-funding alternatives and operating structures
• Advise on how the target should deal with past liability exposures including Incurred But Not Reported Claims (IBNR)