The captive sector is an important and steadily growing part of the (re)insurance industry. Most major corporations (and now SMEs) use captive technology to retain and finance part of their corporate risk. For insurance carriers and reinsurance markets not intimately familiar with captives, it can be a challenge to understand each party's role and deliver a seamless service. As experienced captive practitioners we can advise on all aspects of captive participation to enable insurance markets, in whatever capacity, to provide value and foster a long term partnership with the insured.
Overview of our Services for Insurers & Reinsurers
The market typically interacts with a captive in the following ways:
- Underwriting the risk of the insured and then reinsuring all or part of the risk to the captive ("fronting").
- Acting as a reinsurer of the captive to accept excess risk above the captive's risk bearing appetite. The captive may have assumed risk on a direct basis from the insured or via a fronting arrangement.
In all situations (re)insurance industry stakeholders should interact with the captive on the same terms as they would with any other market participant yet recognising the unique characteristics of the captive arrangement.
Example of CWC services:
- Conduct In-house workshops to ensure full understanding of the captive model, the roles and relationship of all parties in a captive arrangement and flow of funds and documentation.
- Advise on captive participation; programme design, operational processes and procedures, collateral, and reporting requirements.
- Inform of the needs of the captive industry in respect of fronting services and reinsurance protection.
- Advise on developments and trends in the captive industry such as governance and regulatory changes and explain the impact on the captive and on your involvement.
- Act as your in-house captive centre of excellence, either remotely or participate in discussions with the insured and their advisers.
- Introduce you to key captive stakeholders and influencers.
- Assist and participate in marketing activities.