Aon Client Engagement Guide - Risk - Retirement

1 Aon Risk SolutionsRisk. Reinsurance. Human Engagement and Compensation Guide Client Engagement Compensation Guide aon risk solutions 1 IntroductionThe aim of this document is to provide a high-level summary of the work that aon risk solutions does and how we are remunerated for it. Given the wide range of services that we provide, and the very large number of countries in which we operate, it would be impractical to list every individual service and form of remuneration, but virtually everything that we do and all the remuneration we earn fall within the categories defined here. This is a global summary, and since the forms of remuneration we accept in any particular country comply with all relevant national legislation and regulation not all of them will apply in all countries.

2 Our business ranges from helping individuals manage their personal risks , up to assisting some of the world s largest organizations to understand and manage risk on a global scale. That range means that only a proportion of what is described here will be relevant to any one Client , with the precise details defined in the terms of business that each of our service teams aim to deliver distinctive value by dealing fairly with our clients and insurers, and to ensure that our clients have a good understanding of the services we provide for the price they pay. We maintain strict policies and codes of conduct with regular education for our colleagues, and check and monitor our colleagues adherence to them through one of the largest compliance and audit teams in our industry.

3 All our colleagues certify yearly their understanding of our policies and view our focus on transparency and fair dealing as a key element of the relationship we build with our clients . Naturally, as part of our codes of conduct and business policies we comply with all relevant legislation and regulations regarding disclosure of earnings in each country where we operate. If after reading this Guide you have any questions, we encourage you to contact your Aon account representative or your local Aon office leadership for further information. 2 Client Engagement Compensation Guide Aon Risk SolutionsClient Engagement Compensation Guide aon risk solutions 3 Aon Client PromiseThe Aon Client Promise sets out the principles that govern how we serve our clients .

4 The ten principles were derived from what clients told us matter most to them, and are embedded in everything we do. We regularly gather Client feedback so that we can assess our performance and continually search for ways to improve. For clients with the most complex risks , the Aon Client Promise drives Aon s globally consistent approach to delivering personalized service based on their individual business needs. Our structured methodology also creates the industry s most transparent view of the work we perform, and holds our teams accountable for delivering value to the areas of our clients business where it can have the most impact. The principles of the Aon Client Promise are also embedded into the solutions we provide for clients with less complex risks .

5 These solutions are equally underpinned by our understanding of clients needs, the unmatched talent of Aon, and the strength that comes from being the leading brokerage firm in the world, to empower results for our clients . Our Approach to Serving ClientsAon brings a uniquely powerful combination of risk management and broking expertise, data and analytics, advisory and consulting services, and technology and tools to serve our clients . Our objective is to help clients of all sizes and in all industries better understand, manage and where appropriate transfer risk to protect their organizations and empower their results. Because our clients and the risks they face vary in size and complexity, we are committed to serving each Client in the way best suited to their needs.

6 This ranges from entirely bespoke consultation, insurance design and placement, to highly efficient standardized solutions designed around the needs of defined groups of clients . The solutions we provide tap into the vast range of expertise within Aon, and the expertise of insurance companies and other service providers worldwide. We deliver them using the strength of the leading brokerage firm in the world* to ensure you get the right level of risk management and the right insurance cover at the right price. aon risk solutions strives to empower results for our clients by identifying, recommending and executing effective strategies to help them understand, manage and where appropriate transfer risk.

7 Our clients are at the core of what we do, and the value that we deliver is more than aiming to bring our clients the most creative solutions , the best team and the most sophisticated data-driven technology is about helping our personal clients to protect the things that matter most, and our commercial clients to achieve profitability, growth and continuity. ProfitabilityOptimizing your cost and use of capital in order to maximize profitability and performanceGrowthProviding the best risk solutions to propel the growth of your organization successfully across industry, channel or geographyContinuityProviding expertise and advice to reduce volatility, protect your balance sheet and provide stability throughout your organizationEmpowering Your ResultsAon Client Promise Principles1 A comprehensive understanding of the full cost of your risks , rather than just the size of your insurance premium2 The right combination of solutions for your unique priorities 3 A local team who knows your business.

8 And can seamlessly bring you any specialists you need 4 Access to the best markets in the world 5 Innovative solutions for existing and new risks 6 A broking/risk partner who is powerful enough to advocate your interests 7 Comprehensive benchmarking of your risk management approach and insurance cover 8 Excellent service wherever you need it 9 Confidence that your broker is really listening to you and changing what they do as a result Risk management and insurance cover that adds value to your business, at a fair price * Aon has been named repeatedly as the world s best broker, best insurance intermediary, reinsurance intermediary, captives manager and best employee benefits consulting firm by multiple industry sources.

9 Visit for more Client Engagement Compensation Guide Aon Risk SolutionsClient Engagement Compensation Guide aon risk solutions 5 Wholesale CommissionsIn certain cases, it may be preferable to use a wholesale broker if coverage is unavailable in the retail market, or is available at better terms to the Client via the wholesale market. In these cases, we may share commission with a wholesale broker, which in some cases may be an Aon-affiliated or owned entity, for placing the policy on behalf of a Administration and Other FeesThese fees are typically charged for performing administrative functions related to the procurement of coverage including issuing and amending policies, certificates and other documents, electronic policy filing and storage, expiration tracking, Client data management and administration, premium collection and Forms of CompensationIn our role as intermediary between clients and insurers, we provide additional services that may benefit both parties.

10 Insurers typically pay for these services through additional commissions or fees, which can take a number of forms and go by a variety of names in different countries or insurance markets:Administrative Commission/FeeIn addition to the work we do explicitly for clients , we may also carry out administrative functions that insurers cannot or will not perform. Insurers may compensate us by fee or commission on a global, regional or national basis, rather than per Client or individual Commission/FeeWe receive commission or fees from some insurers for work we do to help them deliver specific industry-leading products and services to our clients . Set in advance of the insurance transaction, this is normally a fixed percentage of the premium and is not linked to the insurer s growth targets, profitability, volume or Development or Marketing Commission/FeeWhere we use our understanding of Client need to develop a product, support our structured portfolio approach, or market solutions to clients , insurers may pay us an additional commission or fee to reflect the value of our intellectual property or proprietary materials and systems.