Captive Insurance

 
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Introduction

 

For organisations with a thorough understanding of their own risk profile and a relatively good loss experience, captive insurance can be an effective risk financing mechanism. Benefits can include more control, more flexibility, enhanced risk protection, improved cash flow and ultimately, a reduced cost of risk.

A captive insurance company or “captive” is an insurance company created and owned by an organisation outside the insurance industry, which insures the risks of its parent or other subsidiaries. In other words, it’s like having your own private insurance company (an insurance company that is held “captive” to your own organisation).

 
 

Over the last 20 years, captives have become a well-established mechanism used by medium-to-large organizations to finance risk in a cost-effective way. Today there are over 4,000 captive insurance companies throughout the world.

 
 

Advantages

  • Reduce insurance premiums or the cost of risk
    Your captive will accrue the profit that would otherwise have been passed to your insurer, and administrative charges can be eliminated.

  •  Stabilise insurance costs
     By reducing reliance on the traditional insurance market. 

  • Obtain affordable cover for unusual or complex risks
    By gaining access to the reinsurance market through your captive insurer.

 

  • Generate additional revenue
    By underwriting insurance offered as an add-on to your core product or service. For example, an electronics retailer may sell extended warrant insurance at the point of sale.

  • Improve insurance coverage
    By being able to issue bespoke policies ensuring no gaps in cover.

  • Improve cash flow
    By retaining the funding for losses within the corporate group, as well as earning investment income on the accumulated contributions and loss reserves (which would otherwise go to the traditional insurance company).

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Process

Robus can support you and manage the entire process, from company set-up and licensing through to ongoing management. Our teams in Guernsey and Gibraltar/Malta have considerable experience in the formation and management of insurance companies.

 

 For those considering bearing insurance risk for the first time, we recommend a Feasibility Study to ascertain whether this would be strategically and financially beneficial and to provide analysis of the different structures and domiciles available. We will be honest in our assessments, outlining your options along with the various costs and benefits in an unbiased way.

For more information on our insurance management services click here >

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Key Contacts

We are sure that we can help you with your plans and needs so please contact us as we would love to talk them through with you.  The key contact for each jurisdiction is listed below but if you’re not sure which one, do contact any one and we will respond.

 
 
  Andy Matthews  BCA, ACA  Andy is the Managing Director of our Gibraltar office and uses his extensive experience and knowledge of insurance and his strong commercial acumen to grow and develop the business and relationships with our client base. (Gibraltar)

Andy Matthews BCA, ACA

Andy is the Managing Director of our Gibraltar office and uses his extensive experience and knowledge of insurance and his strong commercial acumen to grow and develop the business and relationships with our client base.
(Gibraltar)

ANDY MATTHEWS | Managing Director
T
 +350 20077065
E andy.matthews@robusgroup.com

  Jamie Polson   As General Manager of the Guernsey office, Jamie has operational responsibilities as well as being the relationship manager and accountant for his client portfolio. He has over 15 years of experience and has managed various structures including PCCs, ICCs, captives and general (re)insurers. (Guernsey)

Jamie Polson

As General Manager of the Guernsey office, Jamie has operational responsibilities as well as being the relationship manager and accountant for his client portfolio. He has over 15 years of experience and has managed various structures including PCCs, ICCs, captives and general (re)insurers.
(Guernsey)

JAMIE POLSON | General Manager
T
 +44 (0)1481 742556
E jamie.polson@robusgroup.com

  Jon Abela  ACII, ARM, LISM, MIM  Jon has a strong insurance background, having spent 17 years working in Malta and the Middle East in technical and managerial roles, covering a multitude of insurer types and insurance classes. He joined Robus in 2018 as General Manager of our Maltese office. (Malta)

Jon Abela ACII, ARM, LISM, MIM

Jon has a strong insurance background, having spent 17 years working in Malta and the Middle East in technical and managerial roles, covering a multitude of insurer types and insurance classes. He joined Robus in 2018 as General Manager of our Maltese office.
(Malta)

JON ABELA | General Manager
T
 +356 99420030
E jonathan.abela@robusgroup.com

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