A captive insurance company is a bona fide licensed (re)insurance company owned by a non-insurance company, which insures or reinsures the risks of its parent and/or its subsidiaries. Simply put: It is a formalized mechanism to finance self-insured risks.
What are the benefits of captives?
Find out why Corporates are increasingly turning to captives to help solve problems in finding insurance cover for emerging and difficult 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.
