Aon’s $1.7 billion corporate master trust has lauded a 90 per cent take-up for a fourfold increase in its default life insurance cover, and has outsourced administration of its 60,000 members to Pillar.

Stewart Fotheringham, managing director at Aon, said that while there were no problems with the current service or cost effectiveness of the in-house administration, Aon was looking forward to the next three to five years. “;Technology is becoming increasingly competitive and complex,”; he said. “;We’re looking to access skill for the future, and think now is the best time to make [the change to Pillar Administration].”; Meanwhile, Fotheringham said he was pleased that 90 per cent of the master trust’s 60,000 members had taken up the higher level of default life insurance cover introduced last year. “;We felt that $50,000 as a default level of cover was inadequate for the majority of members’ needs, and so for a higher premium, the default level was increased to $200,000, which most members have now adopted,”; Fotheringham said. The Aon master trust’s insurer is AIG.

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