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Insurance
Company Structures:
Benefits Of Captive Formation |
A
captive insurance company
is a wholly owned insurance subsidiary of an organisation not
in the insurance business, which has as its primary function
the insuring of some of the exposures and risks of its parent
or parent's affiliates. (More succinctly, it has been defined
as the insurance subsidiary of a non-insurance parent writing
all or part of the risks of the parent). A pure
captive is one which underwrites only its parent
business.
Main Benefits Of Captive Formation:
• Savings in insurance costs
• Selection of risks
• Risk control
• Supplement to conventional market cover
• Access to reinsurance markets
• Taxation
• Benefits of offshore insurance locations
• Implementation of global risk financial strategy
• Development
as a profit centre |
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