Aon PLC on Friday said it has formed a working group to meet the needs of companies involved in special purpose companies, or SPAC.
A SPAC is a listed company formed by a group of investors or sponsors to acquire or merge with an existing company.
The working group was formed in response to the rapid growth of the SPAC market and the growing exposures to management responsibilities and coverage needs of SPAC organizers, said Aon.
By Sept. By 2020, there have been over 100 SPAC offers to date for a total capital raising of over $ 40 billion and an average offer approaching $ 400 million, according to an October Aon client alert.
The working group will focus on Aon said in a statement.
"Due to a mix of rising premiums and retention deductions and shrinking capacity ̵
The working group will be led by Ms Kraeger, as well as Tim Fletcher, Western Region SPAC and IPO, Uri Dallal, Eastern Region SPAC and IPO, and Jim Knox, Technology Leading Regional Practice Leader.
The leadership team is supported by 20 industry veterans with experience in every step of the SPAC transaction from program design to insurance selection to claims and business decisions made, Aon said.