The conventional insurance market cannot always provide the most satisfactory solution for companies.
Sometimes there are problems, such as unavailable covers or limited capacities, which force companies to look for a solution outside the usual market. Also, the volatility of the underwriting cycle (from hard market to soft market and back again) is rarely appreciated by risk managers or CFOs, who prefer stability.
On the other hand, companies are becoming more and more conscious about their risks. The importance of having a performed risk management policy has led to an increase in self-insurance. This has also come about because companies realize that having lower retentions results in a "money" trade with insurance companies, which is no longer desirable.
To help companies solve these issues, BrokersLink offers a complete captive management solution.
According to a particular company's needs profile there are a variety of captive solutions we can implement. These include insurance captive, reinsurance captive, owned captive, rent-a-captive or cell captive, but the benefits that can be achieved are independent of the solution. Such benefits include:
Reduction of insurance costs:- Improved insurance conditions and risk pricing by accessing the reinsurance market directly;
- Obtained substantial decreases in premiums resulting from own retention;
- Retained investment revenues on retained premiums and claims reserves (until losses are settled);
- Retained underwriting profits (when premium volume exceeds the claim amount).
Long-term stabilization:
- Cover for uninsurable risks (where the market does not exist or is much too expensive);
- elimination of the underwriting cycle.
Risk management strategy:
- Centralization and control of risk management policy;
- Allowing companies to take higher retentions while operating units have smaller and more realistic deductibles
- Setting of different rate levels according to loss history and the implementation of loss control measures.