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Insurance Captives
Advantages of a captive
If your current insurance costs (all lines) in this hard market currently exceeds US$ 1,000,000 gross , formation of a captive insurance vehicle should merit favorable consideration.
Advantages to placing Insurance cover through an established captive.
- Potential decrease in the current policy deductible.
- A savings on the net insurance costs of last policy period.
- The placement being reinsured up to 100% into the direct reinsurance market.
- The placement is independently placed on its own and not combined with other risks.
- Prospective 7-10 percent gross reduction using Captive's Broker to place in London, French, American, or other first class market.
- Prospective 2-5 percent gross reduction utilizing the assureds existing broker and Underwriters to participate in the insurance placement.
- Possible claims funding on the business placed through the London or American market once the claim has been approved and prior to collecting from the various markets.
- The Captive's Cover Note being fully acceptable to the assured's mortgagee (bank) with cut through clause directly to the bank from leading U/W's for any loss payable clause in place.
Key Benefits
- Better control on costs.
- Substantial savings on booked premium.
- Additional benefit of purchasing stop loss or excess of loss cover at an underwriter's rate.
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