RGIB Insurance Broking is acknowledged as Australasia’s leading insurance brokerage when it comes to arranging Captive Insurance solutions.
Did you know, more than 400 of the ‘Forbes 500’ companies have their own captive insurance arrangements? – That helps them manage risk on their own terms which is part of the reason they’re so successful.
Some Reasons why you might consider forming a Captive
In today's challenging insurance market, coverage is being tightened, capacity reduced and prices increased, creating a positive climate for alternative risk transfer by way of captive insurance –
so, just what is a Captive Insurance company:-
“A captive insurance company is, in its simplest and purest form is a company formed to insure the risks of its parent corporation. A Captive can’t usually insure risks for third parties like ordinary insurance companies do”
Success in business is all about being ahead of the game; innovative and delivering better products & services than competitors – but, all that good work can be undone by not managing risk appropriately.
Some benefits of captive insurance arrangements
Captive insurance isn’t just for large sophisticated companies, in fact an increasing number of small to medium sized businesses are finding that setting up their own ‘Captives’ [or limited captive “Protected Cells”] can offer a better solution for managing their risks, and at the same time increase their bottom line profits; because properly structured Captive arrangements can;
- provide insurance when insurance is not available from commercial insurance companies;
- reduce the amount of insurance premium the business usually has to pay;
- provide tailored insurance policies with wordings to meet the client’s exact requirements;
- allow the Captive to retain profits that can be either be used to;
- reduce ongoing premiums;
- increase cover limits;
- invest for dividends &/or interest; which can ultimately be returned to the Captive parent [the client] as and when desirable and/or when Captive insurance is no longer required.
The Australian insurance market represents less than 0.5% of the world’s insurance market; New Zealand even less thus, there’s a whole world of specialist wholesale insurance products available out there which might provide a significantly better level of protection at lower prices through a captive insurance program.
Captives & Traditional Insurance company arrangements
Traditional insurance methodology is about ‘taking and pooling premiums from many to pay the claims of a few’ but, if your business manages its risks better than your competitors why should you have to pay more to cover their losses?
Indeed, most general insurance companies pool their premium income from a diverse range of ‘risk lines’ including for instance; typical home and motor products through to farming and crop insurance however; why should you have to pay more to cover losses from a hail storm that damages houses and cars when your insurance requirements have nothing to do with houses or cars? – similarly, why should you have to pay more to cover the losses from farm crops devastated by the effects of climate change?
These are just some of the very basic reasons why smart business is moving to alternative methods of insurance such as captive insurance; and, the more affordable cover available through ‘Protected Cells’ for smaller business.
RGIB Captive Insurance Solutions
RGIB ‘captive insurance solutions’ can provide a ‘turn key’ service for just about any risk transfer requirement of a business, commercial enterprise, individual and/or a for family’s own insurance requirements including in respect of succession plans.
Our services include:-
- Risk & Evaluation Analysis
- Recommendation as to Captive structure
- Policy wording & tailoring of cover
- Broking the reinsurance protection
- Establishing the Captive
- Management oft the Captive
- On going risk management
- Claims & Administrative Services
- Investment Services
Some typical Captives insurance programs include:-
- Key Person & Succession Plans
- Performance Guarantees
- Importers & Exports Transit Risk ‘Cargo’
- Aviation & Marine Risks
- Casualty Programs
- International Property
- Excess & Deductable Insurance
- Professional Indemnity & Liability
- Association Programs
- Warranty and Special Risk Cover
- Reinsurance & Quota Share Treaties
To Learn more about Captive Insurance please click here
To Learn more about ‘Protected Cell’ insurance please click here
If you’re considering the merits of setting up a captive insurance program –
please don’t hesitate to contact RGIB Captive Insurance Solutions