Media room

Press releases—April 2016

Aon Hewitt Named to the 2016 Global Outsourcing 100 List (21 April 2016)
Aon Announces 10% Increase to Annual Cash Dividend (15 April 2016)
Business interuption due to a breach is top cyber risk concern: Aon global cyber benchmarking report (11 April 2016)
Aon Hewitt Announces Best Employers India 2016 (7 April 2016)
Aon Announces First Quarter 2016 Earnings Release and Conference Call (6 April 2016)
Aon poll says pensions professionals are not warming to Lifetime ISA (4 April 2016)

 

Aon Hewitt Named to the 2016 Global Outsourcing 100 List

LINCOLNSHIRE, Ill., April 11, 2016 – Aon Hewitt, the talent, retirement and health solutions business of Aon plc (NYSE: AON), today announced it has been named to The 2016 Global Outsourcing 100 list by the International Association of Outsourcing Professionals (IAOP®).

In its 11th year, the Global Outsourcing 100 recognises the world’s best outsourcing service providers. The list consists of companies from around the world that provide a full spectrum of outsourcing services, including information technology, business process outsourcing, facility services, real estate and capital asset management, manufacturing and logistics.

“Every day, our colleagues focus on caring for our clients and their people, delivering in a high quality, disciplined way and creating value for organizations and individuals. We are always continuously improving and innovating on their behalf,” said Kristi Savacool, chief executive officer, Aon Hewitt. “This recognition underscores our commitment to designing and delivering integrated solutions within and across talent, retirement, health and HR services that enable the well-being of millions of people and their families, deliver results for our clients and shape this important market.”

Aon Hewitt was also recognized on four sub-lists: Customer References, Programs for Innovation, Overall Revenue as Leader and Corporate Social Responsibility.

The full list of 2016 Global Outsourcing 100 will appear in the June 2 issue of FORTUNE® magazine.

Download



Aon Announces 10% Increase to Annual Cash Dividend

LONDON, April 15, 2016 /PRNewswire/ -- Aon plc (NYSE:AON), the leading global provider of risk management and human resource consulting and outsourcing, announced today that its Board of Directors has authorized a 10% increase to its annual cash dividend paid quarterly on Aon's outstanding Class A Ordinary Shares.

Consistent with the increase in the dividend, the Board of Directors has declared a quarterly cash dividend of $0.33 per share on outstanding Class A Ordinary Shares, reflecting a 10% increase from $0.30 per share. The dividend is payable May 16, 2016 to shareholders of record on May 2, 2016.

Download

 

Business interuption due to a breach is top cyber risk concern: Aon global cyber benchmarking report  

Findings underscore importance of conducting a cyber risk assessment, Aon outlines three-step approach for assessing cyber risk

CHICAGO, April 11, 2016 – Aon Global Risk Consulting, the risk consulting business of Aon plc (NYSE:AON), the leading global provider of risk management and human resource consulting and outsourcing, today released its 2016 Captive Cyber Survey report, which finds that the costs of business interruption due to a breach is the top cyber risk concern for businesses across all industries.

As Aon’s first cyber captive survey, the findings offer a better understanding of organisations’ current attitude towards cyber threats, risk assessment, insurance purchasing trends and loss adjustment concerns and provides insight into current retail market trends, including captives and other risk financing solutions.

“Our findings also indicate that there is a disparity between companies recognising that cyber is one of the fastest growing and permeating risks, and actually understanding what their individual exposures and coverage needs are,” said Peter Mullen, chief executive officer of Aon Risk Solutions’ Aon Captive and Insurance Management practice, who spearheaded the report. “Captives are a great alternative risk transfer solution for bridging this gap while the industry’s approach to cyber risk management catches up to the evolving pace of technology.”

The survey findings indicate that 94 percent of companies would share risk with others in their industry as part of a captive facility writing cyber. What’s more, Aon experts anticipate alternative risk transfer options to become increasingly sought after as these solutions give companies some control over underwriting, coverage scope and claims adjustment, while providing an opportunity to share best practices, experience and data in a private setting.
Additional highlights of the report include:

  • 61 percent of survey respondents buy cyber limits in the $10-25 million range, but overall 60 percent of large companies do not buy cyber insurance

  • Of those that do, 68 percent of companies surveyed buy cyber for balance sheet protection closely followed by ensuring due diligence comfort for the board

  • Only 25 percent of respondents that buy limits are confident that they comply with international best practices and standards for information security governance

  • 95 percent of companies surveyed state clear policy wording as the most important issue in the cyber risk market, and 75 percent of large companies express concerns about the loss adjustment process

“Given the evolving nature and complexity of cyber exposures, we found that the use of cyber risk assessments is surprisingly low,” said Kevin Kalinich, global practice leader for cyber/network risk at Aon Risk Solutions. “Conducting such an assessment is a useful tool for improving risk understanding and maturity as well as for helping organizations better prepare for potential business interruption during or after a breach. Aon is at the forefront of assisting clients to develop and implement a risk assessment approach that is cross departmental and can translate cyber exposures into financial impact.”
 
Aon recommends the following three steps to begin a cyber risk assessment:
1. Scenario Analysis: Benchmark the existing cyber risk profile and work with business stakeholders to prioritise cyber risk scenarios

2. Financial Modeling: Leverage advanced financial simulation tools using deterministic modeling to quantify first and third party costs of select cyber scenarios. Consider performing an analysis on non-damage business interruption scenarios using forensic accounting capabilities.

3. Insurability Risk Review: Test the adequacy of limits against the assessed cyber risk as well as review the optimization of the proposed insurance program
 
About the 2016 Aon Captive Cyber Survey

Aon’s 2016 Captive Cyber Survey is designed to offer analysis of top cyber risk concerns, risk assessment approaches, attitudes toward cyber insurance and policy cover and structure. The survey, conducted for the first time in fall 2015, gathered input from risk managers and directors of more than 125 captive insurance companies. The 2016 findings will allow organisations to gain insight into the mounting threat of cyber risk, benchmark their risk management practices and identify approaches that may increase their preparedness.

More information about the 2016 Aon Captive Cyber Survey can be found here: http://www.aon.com/risk-services/cyber.jsp

Download

 

Aon Hewitt Announces Best Employers India 2016


It’s indisputable: Best Employers lead the way with better business results 
 
India, 7 April 2016 – Aon Hewitt, the global talent, retirement and health solutions business of Aon plc (NYSE: AON), announced its list of Best Employers – India 2016.

The Aon Best Employers study was first conducted in Asia in 2001. The purpose of the program is to gain insights into companies that are creating real competitive advantage through their people, to explore what makes a workplace of choice and to identify the Best Employers in the region.

The Aon Best Employers program is the most comprehensive study of its kind in Asia Pacific. It is run in 12 markets: Australia & New Zealand China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, Singapore, Taiwan, Thailand as well as in the Middle East.

A total of 113 organisations representing 12 key industries, cumulatively employing approximately 950,000 employees, participated in the 2016 Aon Best Employers India study.

The study research methodology involves a rigorous process, conducted over a nine-month period that culminates in a solid, credible list of Best Employers decided by an external panel of independent jury. The jury for the 2016 edition comprised eminent business leaders and academicians including:

  • Prof Rajan Gupta, Professor at MDI.
  • Mr. Raman Roy, BPO industry pioneer and Chairman and Chief, Quattro
  • Ms. Renu Sud Karnad Managing Director, HDFC Limited
  • Dr. Santrupt Misra , CEO, Carbon Black Business and Director, Group HR, Aditya Birla Group
  • Mr. Shiv Shivakumar, CEO, Pepscio India

The following organisations were recognised as the 2016 Aon Best Employers in India:

Accor Hotels India Reliance Capital Asset Management Limited
AGS Health Saint-Gobain India Private Limited – Gyproc Business
Bajaj Allianz General Insurance Company Limited SKS Microfinance Limited
Bajaj Finance Limited Starwood Hotels & Resorts India Private Limited
Becton Dickinson India Private Limited Tata AutoComp Systems Limited
Bharti Infratel TATA AIA Life Insurance Company Limited
Blue Dart Express Limited Tata Chemicals Ltd.
DHL Express (India) Pvt. Ltd Tata Communications
Godrej Consumer Products Ltd The Oberoi Group
Hewlett Packard Enterprise, India Whirlpool India Limited
IndiGo WNS Global Services Private Limited
Lupin Ltd YASH Technologies Pvt Ltd
METRO Cash and Carry India  

Marriott International, India was also recognised as a 2016 Aon Best Employer through the Global programme.

Tarandeep Singh, Partner Aon Hewitt Consulting in India said:
“We congratulate the Aon Best Employers India 2016! It is encouraging to see that Best Employer organisations are focusing on not only creating a winning workplace today but futureproofing their organisations against the possible talent risks of tomorrow. This year’s research indicated Rising salaries, Inadequate leadership pipeline, Inability to retain employees and Critical skills shortage as the top emerging talent risks, as quoted by the CEOs of participant organizations. We witnessed some unique practices across Best Employers on their intent and ways to address these challenges thereby continuing to indicate their commanding position as an employer of choice.”

Yamini Maheshwari Sapra, Senior Consultant Aon Hewitt Consulting India and Project Manager Aon Best Employers India Study further said:
“The 2016 Aon Best Employer India Study threw some sharp insights around Best Employers getting ready for what’s to come by:

  • Preempting and solving team conundrum: Best Employers are creating networked structures through unprecedented focus on collaboration, creating nimble teams through providing differentiated career opportunities to the deserving and leveraging from collaboration of the multifaceted by building a diverse and inclusive work environment.
  • Creating a work culture to deliver 10X impact: Best Employers are enabling quicker actions by having fixed the basics around providing the right enabling infrastructure, talent and resources; while creating a culture that empowering and autonomous to drive the high performance culture as well as creating a user-anchored organisation through a well-integrated work environment.
  • Managing the young, the old and the connected: Best Employers are doing this through simple ways of brining in transparency in thought and action through raising the bar on the Employee promise and delivering on the same; through the leaders who inspire and connect and taking the Employee promise beyond just getting the right people towards pushing the pedal on rewarding and recognising the well deserving.”

The Aon Best Employers India 2016 edition is in partnership with BW BUSINESSWORLD. Bloomberg is the TV media partner.

To find out more about the Aon Best Employers – India 2016 Study or to inquire about the next edition of the Best Employers program starting soon, please contact Yamini Maheshwari, Aon Best Employers Study India Project Manager at best.employers.india@aonhewitt.com



Aon Announces First Quarter 2016 Earnings Release and Conference Call

LONDON, April 15, 2016 /PRNewswire/ -- Aon plc (NYSE:AON), the leading global provider of risk management and human resource consulting and outsourcing, announced today that its Board of Directors has authorized a 10% increase to its annual cash dividend paid quarterly on Aon's outstanding Class A Ordinary Shares.

Consistent with the increase in the dividend, the Board of Directors has declared a quarterly cash dividend of $0.33 per share on outstanding Class A Ordinary Shares, reflecting a 10% increase from $0.30 per share. The dividend is payable May 16, 2016 to shareholders of record on May 2, 2016.

Download




Aon poll says pensions professionals are not warming to Lifetime ISA

Government may need to take bold action to ensure take-off

LONDON, April 4, 2016 - Aon Hewitt, the global talent, retirement and health solutions business of Aon plc (NYSE:AON), has said a recent poll of pensions professionals indicated that most believe introducing the new Lifetime ISA (LISA) will not have a negative impact on the take-up of their company sponsored pension schemes.
Following the Chancellor’s Budget announcement of the LISA to encourage saving by young people, industry professionals had expressed concern that it may affect employee contributions to company-sponsored pension schemes, as employees could choose instead to contribute to a LISA, rather than to a pension.

In a recent post-Budget Aon Hewitt webinar, over 600 pension professionals were asked their views on the implications of the announcements.

Over half (58%) of the respondents thought that the introduction of LISA would not have a material impact on the opt-out rates of younger employees in company-sponsored schemes. Only 2% of the respondents thought that LISA would have a significant impact, while 38% of the respondents thought that the impact would be modest.

Most respondents representing employers (44%) indicated that they do not plan to make any specific changes to their benefit packages following the introduction of LISA, while 25% said they would facilitate the introduction of LISA in their benefit packages (e.g. by adding it as an option under a flexible benefits package) and only 8% said they would actively engage with itfor example by offering a choice between pension and LISA with support on design and selection.

Kevin Wesbroom, senior partner at Aon Hewitt, said:
“We welcome the introduction of LISA as a means of encouraging younger people to save for the future. We do think the pensions industry needs to take time to think about how to encourage younger employees to get into the savings habit earlyrather than insisting that a pension is the only vehicle of choice. There are now multiple saving mechanisms that can contribute to retirement saving and a combined approach may be right for different segments – the young and high paid may well both latch onto the ISA/LISA routein addition to pensions. However, we accept that the LISA may not be the right choice for everyone and for some young people this new system could be a distraction that could lead to millennials being left with insufficient savings in later life.”

Impact on auto-enrolment
Debbie Falvey, DC Proposition Leader, Aon Employee Benefits added:
“The introduction of the LISA could be problematic for employers. Some have already pledged to add the LISA to their recruitment benefit packages, but other employers are more wary and say this is a personal choice outside the workplace.

“Choosing to invest in a LISA rather than a pension is an additional choice that some employees will benefit from – for example, if this genuinely gives them the boost towards a house purchase or brings them earlier into saving than might have been the case. However, many could end up worse off if they make the wrong choice on where to invest their money. Many employers offer generous contributions under their pension schemes and are currently unlikely to offer similar compensation under an alternative LISA. Investment strategies will also have significant differences, since any default investment would ultimately target the expectation of whether an individual’s goal is for long-term saving versus short-term cash withdrawal.

“Employers will want reassurance that facilitating access to LISA will not fall foul of the auto-enrolment legislation, specifically around inducing employees out of the pension scheme. As things stand today, a LISA would not be a qualifying pension scheme for the purposes of auto-enrolment.

Debbie Falvey continued:
“It would be a bold movement by the Government to allow employee (or even employer) contributions to a LISA to satisfy the auto-enrolment obligations. Pension schemes are heavily regulated and only become qualifying pension schemes because they meet specific requirements, for example around governance, charging structures and investment choices. The LISA, as part of the ISA product suite, does not have these requirements, and the long term impact of ‘pension savings‘ being withdrawn for house purchase are unknown and could well undermine the success of auto-enrolment.

“As a half-way house – employee contributions to LISA, employer contributions to pensions – could be a dramatic re-shaping that would please many different demographics in the workplace. But then thought needs to be given on how these two very different tax vehicles are combined at retirement to avoid any duplication of tax.”

Pension taxation
During the webinar, attendees were also asked whether they thought that the introduction of the LISA was paving the way towards a full TEE (Tax Exempt Exempt) system. 56% of the respondents agreed that this was the start of a move towards a fully blown TEE system while only 21% thought this was not the case.

Kevin Wesbroom said:
“The Government has implemented substantial changes to the pensions system in the past few years and both employers and employees are still working through the implications. While the Government might argue that it complied with the pre-Budget announcement that there would be no major changes to the pensions system, it is clear to most in the industry that the LISA could be the precursor to a full blown TEE system. We need to make sure that any future changes do not alienate employers from their crucial role of supporting employees in saving for their retirement.”

Download