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Cash in transit premiums could plummet by 20%
Aon welcomes new competition in the London market
London
NYSE: AOC

LONDON, 2 September 2008 - Global security firms could benefit from rate reductions of up to 20% for their cash in transit (CIT) cover due to new players in the niche insurance market, according to Aon's fine art & specie team. Following the welcome competition, the global insurance broker is urging companies to focus on how to prevent or control attacks to secure better premiums.

Premiums for the compulsory CIT insurance, which covers theft or damage of money or valuables while in storage or in transit, have seen little movement over the last 24 months but the market is turning with new entrants in the global marketplace. This has created competition in the London market, which provides 80-90% of all global cover and includes US$1.5bn capacity from Lloyd's and London company market alone.

Barry Vickery, director of Aon's fine art & specie team, commented: "Now is the time to benchmark premiums and coverage with insurers, which is reflected in how we're increasing coverage and driving premium decreases of up to 20% in what has been a stagnant market. Insurers hint that rates are hardening - however, we have experienced reductions for those companies with good track records that demonstrate proactive risk management plans."

Daniel Smith, director of Aon's fine art & specie team, added: "To secure lower rates, firms need to differentiate themselves through risk mitigation and take the time to explain this to insurers. Taking higher deductibles can also put companies in a better position to negotiate. Unfortunately there can sometimes be a gap in understanding of risk between the global security companies with dedicated risk managers and the smaller, independent firms.  While negotiating the best rates, the latter need to understand the perils of only being offered an inept policy that is littered with exclusions and fails to pay in the event of a claim."

In the current competitive climate, Aon recommends that:

1. firms' CIT risks are fully marketed to a range of insurers to benchmark premiums and engage in healthy competition;

2. time is spent with insurers to allow them to gain an understanding of the firm's risk management and mitigation procedures;

3. broad cover is achieved to ensure claims are paid in a timely manner. A large focus has, and will continue to be, on premium spend, however, wordings can vary substantially between insurers so it is critical to not to forfeit cover over premium.

Ends
For more information contact:
Alexandra Lewis
0207 882 0541
Alexandra.lewis@aon.co.uk
http://aon.mediaroom.com 

About Aon
Aon Corporation (NYSE: AOC) is the leading global provider of risk management services, insurance and reinsurance brokerage, human capital and management consulting. Through its 36,000 colleagues worldwide, Aon readily delivers distinctive client value via innovative and effective risk management and workforce productivity solutions. Our industry-leading global resources, technical expertise and industry knowledge are delivered locally through more than 500 offices in more than 120 countries. Aon was named the world's best broker by Euromoney magazine's 2008 Insurance Survey. In 2008, Aon ranked highest on the Business Insurance ranking of the world's largest insurance brokers based on commercial retail, wholesale, reinsurance and personal lines brokerage revenues. Aon also was ranked by A.M. Best as the number one insurance broker based on brokerage revenues in 2007 and 2008, and was voted best insurance intermediary, best reinsurance intermediary, and best employee benefits consulting firm in 2007 and 2008 by the readers of Business Insurance. For more information on Aon, log onto http://www.aon.com/.

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