Aon Corp. has entered into an agreement with Reliance Group Holdings to provide claims management services for the majority of Reliance’s outstanding insurance policies. Under the terms of the agreement, Aon and its subsidiaries will not assume any underwriting risk.
The agreement contemplates a multi-year arrangement in which Cambridge Integrated Services Group, Inc., an Aon subsidiary, will manage claims from investigations through settlements to fulfill the terms of policies issued by Reliance’s wholly owned insurance companies.
Cambridge is a provider of claims and loss cost management services to insurance carriers, self-insured companies, reinsurers and managing general agents. Cambridge will employ the majority of Reliance’s claims staff and will manage claims administration from both Reliance’s and Cambridge’s offices under the proposed agreement.
Aon and Reliance plan to finalize a definitive agreement in the near term that will require the approval of Reliance’s board of directors as well as certain insurance regulators.