The power of three
Aon Hewitt, the employee benefits arm of Aon, has now established itself in Bermuda in a bid to provide a complete service via Aon’s existing risk management and brokerage operations.
Joe Rego, president and CEO, Aon Bermuda, and Rick Wellner, partner, Aon Hewitt, explain just how this latest move will benefit both Aon as a company and businesses based in Bermuda.
Why was now the right time to introduce Aon Hewitt on to Bermuda, and how will this boost Aon’s capacity as a group on the Island?
Wellner: Aon is the leading global provider of risk and people solutions, and we have been working with Bermudian companies for a few years. Having such a presence on the Island allows us to comprehensively service businesses that need our assistance.
There is a lot of risk in human capital solutions, and we offer the capacity to address issues around talent, pension funding and mergers and acquisitions (M&A), which lead to concerns over talent retention, succession and other issues which are key business drivers.
Adding Aon Hewitt gives a third prong to what we already have in Aon Risk Solutions (ARS) and Aon Benfield.
Rego: Over the last few years, we have established a strong line of business here in the HR solutions space and our main focuses are on risk and human capital. We have a very robust operation on the risk side and it is prudent that we add our global leading capabilities on the human capital side to our existing and prospective client base on the Island.
What are the main HR challenges for companies in Bermuda?
Wellner: Talent. Underwriters and key talent within these organisations are vital to the success of these companies. Having and finding the right talent is paramount, and the solutions that we have in talent identification, and engagement, can help to ensure that within an organisational structure, an interruption in talent doesn’t impact the productivity of the business.
Also, matching and limiting liabilities within pension schemes through actuarial and investment techniques is a challenge.
Over the last year, there has been a tremendous amount of M&A activity in the insurance industry. We have the structure to support the due diligence process of an M&A transaction, as well as the integration and ongoing support. Also, we have market-leading insight in both retirement and health and benefit solutions, to ensure that these are implemented appropriately and benefit employees in Bermuda.
"It is prudent that we add our global leading capabilities on the human capital side to our existing and prospective client base on the Island." Joe Regio, president and CEO, Aon Bermuda
How will Aon Hewitt’s services specifically tackle these challenges?
Wellner: One key area is in talent rewards, which includes compensation services, sales force effectiveness and leadership assessment and engagement. Also, within the retirement side of Aon Hewitt, we offer actuarial and investment consulting and administration services.
We also offer help with benefit placement as well as global consulting—we are in 190 countries, so we undertake a number of placements for large multinational organisations. One of our key capabilities is that we can work with a client’s headquarters in Bermuda and also place benefits for their subsidiaries outside the US; we implement a global strategy for benefits but also implement them locally.
Another key area is HR operations; clients are considering more enhanced administration services, such as cloud-based systems and payroll solutions.
What would Aon Hewitt in Bermuda like to achieve over the next 12 months?
Wellner: We are looking at having on-Island as well as off-Island colleagues to support and grow the business, as we are very technically driven from our talent base. We are considering having colleagues responsible for building relationships and coordination based on the Island.
Rego: As we look to the future, we will recruit as required. Bermuda is still the leading destination for the incorporation of new re/insurance entities, and as we look forward to the development of that business on the Island, it will complement some of the services that we already offer such as business process and outsourcing services. We are already offering services to businesses on the Island in areas such as payroll and benefits administration, immigration and regulatory filings, so this is a natural extension of being able to offer more Aon Hewitt services.
Wellner: Primarily, we are thrilled to add the ‘third pillar’ to Aon Bermuda, alongside Aon Risk Solutions and Aon Benfield. It has been two years in the making and we are excited to be in Bermuda and to support the Island—it’s a celebration for us to work alongside the firm’s risk and reinsurance businesses.
How will Aon Hewitt Bermuda differentiate itself from the competition?
Wellner: First, we have a close relationship with our colleagues in both risk and reinsurance. Of all our competition on the Island, we are the most integrated company that understands the insurance and reinsurance industries. Second, our global footprint is a huge advantage. Many businesses on the Island are global, so having a local office and a worldwide network available to our clients is a significant differentiating factor over other consulting and accounting firms.
Furthermore, our knowledge of other vertical industries, such as government and the manufacturing sector, enables us to bring additional expertise and knowledge to clients.
Joe Rego is president and CEO, Aon Bermuda. He can be contacted at: joe.rego@aon.com
Rick Wellner is partner, Aon Hewitt. He can be contacted at: rick.wellner@aonhewitt.com
