CAPTIVE INSURANCE - LARGE CORPORATE

A captive insurer is generally defined as an insurance company that is wholly owned and controlled by its insureds.

90%

of fortune 1000
companies have captives.

7,000

captives
in the world.

50%

of non-life insurance
premiums written
through these captives.

CAPTIVE INSURANCE - LARGE CORPORATE

ADVANTAGES

  • Reduction in overall risk costs
  • Improve and tailor coverages
  • Participation in underwriting results
  • Access to wholesale reinsurance markets
  • Earn interest income & maintain stability of pricing
  • Secure broader coverage & participate in claims management with greater control
  • Improve cash flow
  • Inculcate risk improvement to improve operational efficiency

TYPES OF CAPTIVE

  • Form & own by ABC Corp. to underwrite for it’s subsidiaries & qualified associate companies
  • Holding owned captive collects premiums, pay losses, derives investment income from the operating
  • Companies supporting the captives Beneficial ownership belongs to shareholder only

HOW TO FORM A CAPTIVE COMPANY

  • Appoint expert to conduct free Preliminary Captive Assessment (PCA)
  • Provide insurance underwriting information
  • If study is positive, a high quality captive design and business plan will be drawn up
  • Submission of captive application with supporting documents