The aim of this course is to explain and highlight the importance of Captives within the overall Risk Transfer concept, as well as to help obtain an appreciation of the thought processes needed when considering setting up a captive and deciding on what type of Captive. The course also looks to dispel some of the “myths” surrounding Captives as well as encourage further investigation into the various Captive concepts.
This course is relevant to anyone new to this sector of Risk Transfer working in insurance or reinsurance, law, run off where their clients or potential clients have or are considering setting up a Captive or other Self Insurance risk transfer mechanism.
The Captive Concept:
- what is a Captive – how is it different from “owning an insurance company”?
- why did they come into being?
- how have they evolved?
The practicalities of using a captive:
- how it can fit into an insurance programme?
- what types of Captive are there?
- how do they differ?
- advantages and disadvantages - sole ownership - joint ownership - rent a captive - protected cell companies - segregated account companies along with special purpose vehicles
- where they might be set up - a review of some of the core locations and how they differ (e.g. Bermuda v Vermont)
How they are managed and who by?
What is the role of the manager?
How much might they cost to set up? - typical costs