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Captives
and Alternative Risk Financing
See
also:Case
Study
| A
soundly constructed and professionally managed captive insurance
company that is supported by world-class reinsurance partners
is a vital tool available to the modern Risk Manager. Some of
the important benefits of a captive insurance company are: |
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The ability to stabilize premiums and loss costs over
a long-term;
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The opportunity to capture interest income, ceding commissions
and profit commissions that are normally available to
primary insurers;
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The ability to build a surplus from good loss experience
that allows the captive to safely retain risk and support
the parent company's risk tolerance strategy;
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Lower insurance transactional costs;
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Direct access to world-class re-insurers with significant
capacity and the ability to cover difficult risks on a long-term
basis;
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Broad insurance coverage and a platform for developing alternative
risk financing programs;
- The
flexibility to deliver risk management programs and value
added risk management services that are focused to the unique
risks of the corporation;
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Independence from the traditional insurance market that
has inherent conflicts of interest;
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The ability to accelerate the recognition of tax deductions
and remove balance sheet liabilities of the parent company;
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| A
captive is not a suitable risk management tool for every business.
RM Solutions offers a Captive Pre-Feasibility Review that will
"model" a 5-year pro-forma Income Statement. Using
historical loss and premium data from your business and making
some general assumptions, we are able to provide observations
and recommendations you should consider if you wish to go to
the next step of a full captive feasibility study. |
There
is no charge for this review and no obligation. Please
contact us if you have an interest in obtaining a Captive
Pre-Feasibility Review.
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