Risk Management

Captive Consulting

What is a Captive?

A captive insurance company (‘captive’) is a specialised type of insurance company, which only insures the risks of its parent company (and whose main industry is not insurance). There are currently more than 4,000 captives worldwide and the number is growing. Many large organisations understand the value of a captive - in terms of obtaining a more strategic approach to insurance procurement and as a means to reducing long-term insurance associated costs.

Benefits

Offers an alternative and potentially cost-efficient finance mechanism to protect against minor risk exposures
Reduces the impact of insurance market cycles on currently insured programmes
Promotes risk management by encouraging self-management of (retained) risks (e.g. increased security against terror risks)
Provides corporate managers of risk (insurance managers, risk managers) with a flexible tool to support and implement a risk financing strategy
Offers a means to finance ‘difficult to insure risks’ in a tax-efficient manner

Why Commission a Captive Feasibility Study?

Explore the options available to finance risk
Identify the optimum balance of risk retention and risk transfer
Develop a long term risk finance/insurance strategy

How does JLT Approach Captive Consulting?

Review the captive concepts employed in situations similar to your organisation's, including a review of the benefits and considerations involved
Recommend a design for a suitable captive programme
Review of the costs and / or benefits of financing currently uninsured exposures through captives
Review of the structural options for a STE captive programme
Advise on suitable domicile options
Advise on captive management structure and programme administration arrangements to effectively manage corporate governance issues
Make captive financial projections based on a range of assumed income, loss and expense factors

Our Experience & Credibility

JLT’s Captive Consulting team is by far the most experienced team in Asia with over 25 years of captive and risk financing experience behind them. We have strong experience assisting organisations with their alternative risk financing and captive management needs.

For more information on Captive Consulting or Strategic Risk Financing, please contact JLT Risk Consulting Asia.