Utilising rent-a-captives can deliver considerable
savings over conventional insurance programmes as well as
having many other benefits for small and medium sized companies
says Peter Niven, Chief Executive of
Imagine the happy faces when your clients see their cost
savings associated with retaining the unclaimed premium in
their insurance programme.
Aside from this key benefit SME clients may utilise a
Avoid paying large overheads and profit margins
Insure unusual or catastrophic risks or multiple small
Have direct access to the wholesale reinsurance
Benefit from the investment return on retained
Take advantage of taxation efficiencies – the
payment of insurance premium is deductible in arriving at
profits and receipt is at the group's offshore
Access lower insurance premiums as these relate to the
insured's previous claims record
Improve their risk management and understanding of the
cost of risk
But aren't the start-up and on-going costs
No. In rent-a-captives these costs are shared which makes
them economically viable for small to medium sized
Will sharing a captive insurance company expose
clients' assets to the risks of other
Again, no. Rent a captives can be so effective for
SME's as they utilise cell structures such as the
Protected Cell Company (PCC) – a company made up of a
core and individual cells, where the legal segregation ensures
that no claim against one cell will be covered by the funds
furnished by another.
So, rent-a-captives really are viable for
Yes, and in addition the use of a third-party cell company
rather than a full-blown captive has distinct benefits for
Lower operating costs –
Savings from reduced reporting requirements and shared
Less management time –
Reduction in the amount of executive time required by the
cell owner, primarily because attendance is not required at
quarterly PCC Board meetings
Quicker and cheaper to set up and exit
– Setting up and closing down a PCC cell does not
require the same legal processes required to incorporate or
wind up a company
No minimum capital – There is
a need to cover the minimum margin of solvency and the risk
gap but this may be less than the £100,000 minimum
required for a separate captive
Less tax – Using a PCC can
avoid being subject to Controlled Foreign Company
Interested in hearing more?
Please get in touch or contact one of the many service
providers on the Island who are leaders in the captive
insurance field. They can be viewed through the business
Guernsey is the leading Captive insurance domicile in Europe
and is in the top five jurisdictions in the world. The Island
introduced PCC legislation to the world in 1997 and has since
introduced an alternative in the Incorporated Cell Company.
There is no better home for your clients' business.
Since the PRIIPs Regulation was published on 9 December 2014, the concept of a multi-option product has been one of the most discussed topics among the manufacturers of insurance-based investment products.
Directors & Officers Insurance (D&O) is a relatively new
branch of insurance in the United Arab Emirates (UAE) market.
Accordingly, issues such as allocation of costs have not yet been
considered by UAE or Dubai International Financial Centre (DIFC)
The MFSA issued a consultation document proposing the introduction of external auditing requirements for certain quantitative reporting templates that will form part of the Solvency Financial Condition Report.
From August 12 2016 when the UK's Insurance Act 2015 takes effect there will be differences affecting business (ie non-consumer) policies issued in Isle of Man and those issued in UK, including renewals.
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