A broad offering for multinational companies operating an inhouse insurance program.
Captive Fronting
Captive Fronting draws on our considerable experience in insurance program design and management to deliver a range of global fronting solutions. From coordinated standalone local placements to fully integrated international insurance programs we adopt a modular approach to program design to ensure our captive clients are fully covered wherever their business takes them.
Our extensive network, comprising of Allianz offices and trusted partners in over 200 countries and territories, provides comprehensive expertise in underwriting, risk management, policy servicing, and claims globally.
From being the only provider of multi-line, multi-year Captive fronted programs to delivering uniquely flexible claims controls, unbundled fronting solutions and structured reinsurance behind Captives, our aim is to continually push boundaries to provide innovative fronting programs in support our clients changing risk landscape.
We also provide a wide range of ‘unbundled’ solutions for captive such as reinsurance, stop-loss mechanisms to protect the captive retention, or supporting a captive with additional structured solutions for specific risks.
How is our global captive fronting via Alternative Risk Transfer different?
Multi-line, multi-year Captive fronted programs
A structure uniquely offered by Allianz Commercial. A different, dynamic option, which can be coupled with structured reinsurance. Ability to issue a single policy for multiple lines where legally permitted.
Flexible Claims control options
Flexibility in tailoring claims handling approach on programs, with the option of claims control through an approved Third-Party Claims Administrator with Allianz oversight.
The Largest owned network
Allianz Commercial can issue multi-line, multi-year policies in more than 200 countries and territories – the largest global network, underpinned by multinational network management structures.
Business intelligence solutions and online portal
Analytics and reporting components are included to maintain transparency and oversight of the fronting program. Direct access to real time program data is provided through our online client portal.
Dedicated and standalone Captive Solutions team
We have a coordinated, consistent response and service value proposition around captive fronting globally, regardless of region.
Dedicated unbundled fronting
Our global captive fronting team specializes in unbundled fronting program design and execution.
Optional structured reinsurance behind Captives
Beyond structured fronting we can provide structured reinsurance behind the captive.
Cashflow guarantees
We provide premium payment timeline guarantees.
Best practice examples
Captive fronting and reinsurance solution in a consistent global approach: 12 lines covered in one single transaction
A multi-billion, global pharmaceutical company was grappling with increasing risk transfer costs combined with a fragmented global program approach. The ART team took the time to diligently understand the client’s requirements and developed a consistent, compliant captive fronting and reinsurance solution for 12 lines of business across a significant global footprint. Lines of business included for example, Property, General Liability, Cyber, D&O, Environmental Pollution, Contractors All Risks and Marine Cargo.
Key benefits
The client was able to
What is a Captive?
A captive is an insurance company that is set up and owned by a non-insurance company to act as a direct insurer or reinsurer for the parent company and its subsidiaries. Instead of transferring risk entirely to the traditional insurance market, a captive allows organizations to retain a defined portion of their risk in a structured and regulated way, while still accessing insurance and reinsurance capacity where needed.
Risk share arrangements similar to the captive concept have existed for over 100 years, but true captives date from the late 1950s, developed by property engineer, Frederic Reiss, with the first captive insurance company established in Bermuda shortly afterwards.
Captives are typically used as part of a long‑term risk management and risk financing strategy. They enable organizations to take a more strategic approach to managing risk across multiple years and lines of business, rather than relying solely on annual insurance renewals.
Through a captive structure, companies can retain risk they understand well, stabilize earnings over time and gain greater control over their insurance programmes. Captives can also be used to support coverage for risks that may be limited, expensive or unavailable in the traditional insurance market, including emerging or non‑conventional risks.
How captives can support a risk manager
Build surplus
Track underwriting performance
Balance risk and risk appetite
Address requirements in different jurisdictions
Improve control of losses
Manage insurance market volatility
Cover hard-to-insure risks
Provide necessary evidence of coverage
Simplify the loss experience for different business units
As a risk management tool for self-insured retentions
Lower the total cost of risk (increased market resilience)
Provides access to capital and reinsurance markets
5 reasons to consider captive fronting
Captive fronting services deliver insurance program design and management in many different jurisdictions around the world on a multi-line, multi-year basis.
You benefit from a single point of contact who manages an experienced team dedicated to your account.
Captive fronting services create an efficient global insurance program, ensuring compliant, tailor-made wordings, and delivering appropriate control of the type and level or risks covered.
Fronting arrangements allow captives to comply with financial responsibility laws imposed by different jurisdictions that require evidence of coverage by an admitted insurer.
All the required filings and paperwork can be handled by a captive fronter, including claims, engineering and risk control, and issuance of certificates of insurance.
Meet our Captive Solutions experts
Brian McNamara
Global Head of Captive Solutions, Regional Head of Multinational North America & Latin America
Lucia Rubino
Senior Underwriter and Global Fronting Service Delivery Manager, Alternative Risk Transfer
