In part one of this three-part series shining a spotlight on the role of captive insurance companies, Executive Director - Bermuda, Sherman Taylor details the key benefits of an effective captive and why it is an attractive option for businesses.

A well-run captive can be an effective risk management tool, reducing group insurance costs for the captive owner. However, the commercial rationale for incorporating and establishing a captive extends beyond pro?t considerations, and the current insurance hard market cycle has created new industry buzz about captives.

Bene?ts for the captive owner include:


The ability to in?uence pricing is another bene?t of owning a captive. Large rate increases were evident in the latest round of insurance renewals, and it is unlikely that rate will come down in the near future as insurance and reinsurance companies are still dealing with the impact of major loss events spanning the past three years. It is highly anticipated that pandemic losses will exacerbate the situation and drive even more interest in captives.

In part two of the series, I will highlight the key elements to consider when looking to establish a captive. Read here.

Captive solutions

Our team provide a suite of legal, administration and fiduciary services to the ILS and captive market from our Bermuda, Cayman and BVI offices, ensuring that all structures remain compliant with applicable regulations in each jurisdiction. We add value throughout the life cycle, from incorporation and licensing, to unwinding and voluntary liquidations when the structure ends its natural life - precision and technical expertise has been the hallmark of our service offerings to this important global industry.

Originally Published by Ocorian, February 2021

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.