CAPTIVE INSURANCE

It’s a limited purpose insurance company established with the specific objective of financing risks emanating from its parent group or groups.

POTENTIAL TYPES OF RISK

Property damage, public and products liability, professional indemnity, employee benefits, employers liability, motor and medical aid expenses. The captive's exposure to such risks may be limited by the use of reinsurance

TYPES OF CAPTIVE

- Single parent captive

- Association Captive

- Group Captive

- Agency Captive

- Rent-a-Captive

- Special purpose vehicles

- Segregated portfolio companies

COMMERCIAL ADVANTAGES AND ISSUES

- Cost

- Flexibility

- Claims management

- Claims experience benefits