The better the question. The better the answer. The better the world works. У вас есть вопрос? У нас есть ответ. Решая сложные задачи бизнеса, мы улучшаем мир. У вас є запитання? У нас є відповідь. Вирішуючи складні завдання бізнесу, ми змінюємо світ на краще. Meilleure la question, meilleure la réponse. Pour un monde meilleur. 問題越好。答案越好。商業世界越美好。 问题越好。答案越好。商业世界越美好。

EY Global Captive Network

Teams of professionals working together in an integrated way across the globe to bring exceptional service to captive market clients

Why a captive?

An organisation might consider setting up a captive for a number of reasons:

  • Access to coverage that would otherwise be too costly or unavailable elsewhere
  • Lower commercial insurance costs
  • Enhanced cash management as money remains available to the group through affiliate transfers until a claim becomes payable, enabling better, more proactive intercompany cash flow
  • Flexibility when dealing with risk retention and risk management
  • Deductible buy-down, which allows operating companies within the organisation to be fully insured with low deductibles
  • Writing unrelated risks for profit, enabling the group to insure customers’ risks directly
  • Stability of insurance costs, coverage and service
  • Access to the reinsurance market
  • Centralising data on employee benefit and other programmes
  • Facilitates the incubation of unusual risks within the organization, enabling a claim’s history to be developed with the aim of obtaining external insurance
  • Driving risk management strategy and efficiency
  • May provide efficiency in pricing through access to the wholesale market
  • Domiciles that offer significant investment flexibility to pure captives
  • Ability to structure risk financing in a most efficient manner from capital and tax perspectives
"It is well understood today that captives provide significant benefits in reducing the price of risk transfer and by providing access to the reinsurance market. But they also provide risk managers with a knowledge database of risk exposures, which permits an overview of all the major areas of the business unparalleled in other management systems. This is critical because risk management is about no surprises, not no risk. Of even greater importance is the way captives mitigate the volatility associated with self-insurance by smoothing the financial effect of surprises for smaller profit centres."
Alan Fleming, Chair of the Airmic Captives special interest group

EY - Why a captive?

An organisation might consider setting up a captive for a number of reasons:

  • Access to coverage that would otherwise be too costly or unavailable elsewhere
  • Lower insurance costs
  • Cash flow: As premiums are paid to an affiliate, money remains available to the group until a claim becomes payable, enabling better, more pro-active intercompany cash management
  • Flexibility when dealing with risk retention and risk management
  • Deductible buy-down allows operating companies within the organisation to be fully insured with low deductibles
  • Writing unrelated risks for profit enables the group to insure customers’ risks directly
  • Stability of insurance costs, cover and service
  • Access to the reinsurance market
  • Centralising data on Employee Benefit and other programmes
  • Facilitates the incubation of unusual risks within the organisation, enabling a claim’s history to be developed with the aim of obtaining external insurance
  • Driving risk management strategy
  • May provide efficiency in pricing through access to the wholesale market
  • Some domiciles offer significant investment flexibility to pure captives.

EY - Why a captive?