Insurance company formation and management

Retaining your company’s risks, and reducing their cost

insurance-company-formation

An efficient way to manage wealth

Self-owned insurance companies, known as ‘captives’, can be used to retain all or part of a company’s risks – and to reduce its total cost of risk by keeping profits that would otherwise be made by third-party insurers.

By setting up a captive insurance company, you can:

  • reduce insurance costs (a captive doesn’t have the overheads of a conventional insurer, so the premium is based purely on risk)
  • budget efficiently, as a captive’s premium isn’t affected by changes in the insurance market
  • keep any profits made when premiums exceed claims
  • write policies to suit your individual requirements
  • settle claims more quickly and readily than with a conventional insurer
  • provide for uninsured risks – where insurance is either unavailable or prohibitively expensive.

Often seen as suitable just for larger organisations, properly structured and managed captive insurance companies can also benefit smaller businesses and wealthy individuals. You can use them to:

  • accumulate wealth, by retaining underwriting profits and investment income in an efficient structure
  • protect assets, by using capital to support underwriting, which makes it a business asset and not part of your estate
  • plan your estate and succession, by making ownership of your captive  for the benefit of future generations, to allow an efficient transfer of wealth.

Meeting your specific needs

We start by discussing your particular requirements. We identify your risk appetite, determine where best to retain those risks, and decide the most appropriate way to do it.

From here, we develop a risk-retention strategy, and a business plan that clearly sets out the expected benefits and costs.

Because your needs are likely to change, we regularly review your captive insurance structure to ensure it remains effective for you. We might even find that a captive is no longer suitable. If so, we work with you to develop an efficient exit strategy that ensures you still get the best from your captive.

Get in touch.

Call us for free or submit your enquiry online