Aon’s sidecar with Berkshire Hathaway has helped clients and the Lloyd’s market, Aon CEO Greg Case says.

“Client response to [the] sidecar continues to be extremely positive,” he told an Insurance Institute of London seminar in the Lloyd’s building.

Many in the London market criticised the co-insurance arrangement when it was launched in March last year, fearing it would undermine Lloyd’s.

Mr Case says the sidecar has given retail clients “fast and effective access” to AA+ rated capital that is usually only available to reinsurance markets.

By the end of last year, 2500 individual policies had been written for more than $US1 billion ($1.06 billion) in premiums, or 70% of eligible capacity.

About 26% of clients had increased their London order, and Aon’s premium volume into Lloyd’s grew 3% last year.

Mr Case says client premium growth into Lloyd’s is highest in areas that use the sidecar.

“Clients value the capacity,” he said. “[The] sidecar has reinforced the value proposition of London and of Lloyd’s.”

Under the arrangement Aon clients and the Lloyd’s market get access to Berkshire’s capital, while Berkshire gets 7.5% of the Aon business brokered through Lloyd’s.