Captive Insurance Management and Consulting

As organizations’ risk profiles become increasingly sophisticated, more businesses are considering moving away from a transactional insurance program to one more closely aligned to their changing needs.

The decision to form a captive is often driven by the need to access improved coverage, reduce the cost of insurance and assert greater control over risk. 

Coverage and cost saving are often the primary motivations, but once a captive is up and running, the wealth of loss information generated can significantly improve a company’s risk management and strategic decision-making

JLT Insurance Management (JLTIM) is a full-service captive insurance management and consulting firm dedicated to providing alternative risk solutions that meet diverse needs. Located worldwide, JLTIM manages captives in most major domiciles.

JLT Insurance Management provides leading corporations with captive management services in Barbados, Bermuda, Guernsey, Malta, Singapore and the United States. With annual written premiums and assets of over USD 2.3 billion and USD 4.9 billion respectively, we’ve a proven track record in helping clients choose a fitting domicile for their captive insurance company by evaluating business goals and operational issues.

WHAT WE DO

Captive Insurance

We can support you with every stage of the captive process, from initial consultation and understanding whether a captive may be suitable for your business, to captive feasibility studies, risk financing and strategic reviews. Our expertise includes:

CAPTIVE CONSULTING

Our consulting team understands the lifecycle of a captive, from start-up and maturation through possible shut-down. At any phase of your captive life cycle, depend on our consultants for these expert services: feasibility, implementation, new product development and expanded lines, strategic reviews, benchmarking and exit strategies. 

Our consultants ensure each solution has the flexibility to meet changing cash flow, capital requirements, exposures and insurance needs. Our innovative programs create an environment for cost containment and safety improvements so that your captive has the appropriate mix of self-insurance and creative reinsurance products.

Captive Insurance

CAPTIVE MANAGEMENT

We provide a full suite of captive management service, tailored to meet the needs of single parent captives, group captives, association captives, risk retention groups, and cell facilities in our care. These services include: formation/licensing, financial management, insurance management, regulatory compliance and corporate governance and board meetings.

RENT-A-CAPTIVE, PROTECTED CELL CAPTIVE (PCC), SEGREGATED CELL CAPTIVE (SCC)

JLT IM’s cell facility Isosceles, based in Barbados, Bermuda, Guernsey and USA, supports cells and access to alternative markets, including transformer vehicles for ILS transactions.

CAPTIVE UNDERWRITING

We have a full underwriting team, who will help you control risk, reduce costs and potentially capture tax benefits. With a program tailored to meet your specific needs, we’ll work with you to handle your varied liability risks and capture underwriting profits commercial insurance companies formerly retained.

KEY STATS

Captive insurance management and consulting Captive insurance management and consulting Captive insurance management and consulting Captive insurance management and consulting

FAQs

A captive is a wholly owned subsidiary of a non-insurance related parent company that acts as an insurer for that parents own risks. The parent puts up their own capital to insure their own risks with a view to building a better risk management program and sharing in underwriting profits.

THere are some questions that can help you decide if a captive is right for you:.

  • Do you have a complex risk profile with major insurance spending and the need for multi insurer international capacity?
  • Do you want to increase your control of:
    • How your insurance budget is spent?
    • How your risk transfer arrangements are put into practice?
  • Do you have the resources in management capability and financial capital to develop a system to capture greater value from your risk transfer arrangements?
  • Do you have the appetite to retain more of your own risk?

Your captive must support your strategic risk financing objectives. A successful captive provides financial, strategic and financial benefits.

Talk to a captive manager about self-retention options including captive insurance solutions. This can demonstrate commitment to good risk management to your insurer, and take some onus off the market.

A captive manager can support your risk financing for cyber insurance  through a captive. It can fill in gaps in coverage, or offer broader coverage than that offered in the market, as well as provide data to transfer this risk into the market at a later date.

WHY JLTIM

We understand captive formations, having been in the forefront of industry developments from its formative year’s right up to today’s dynamic environment.  

JLTIM will partner with clients and their advisors to design captive programs, recommend optimal structures, and determine ongoing capital requirements. Our critical eye ensures your captive strategy addresses enterprise challenges now and in the future.

At JLTIM, your captive’s success is our ultimate goal.  We ensure your success by providing an integrated team of captive consulting and captive management experts, who will proactively advise you during every phase of your captive.

We deliver tailored solutions that are truly individual to each client. Whether you seek a captive manager or consultant for a multinational or single-purpose domestic risk financing, our seasoned professionals at JLTIM are here to help.

CASE STUDIES

Captive Insurance

CAPTIVE REVIEW FOR MAJOR FOOD EXPORTER

The client maintains a long established, well capitalized and predominantly profitable captive insurer. Whilst the captive is functional, the client was interested in an impartial review of the current, near and distant opportunities and challenges. The review initially assessed the captive’s value and on-going viability as a tool in the client’s risk financing equation.

Having assessed that there is material value, we analyzed the current captive’s operations, governance and performance. Then we considered relevant developments that could enhance the captive’s value as a strategic player in the client’s risk financing arrangements. We ensured their operations complied with best practice governance standards, reviewed their corporate strategic objectives and scoped future threats that could impinge upon operations.

Captive Insurance

CAPTIVE FEASIBILITY FOR LOGISTICS SERVICE PROVIDER

The client operates within a volatile risk business and wanted to explore how a captive could provide flexibility to leverage corporate strength and provide alternative financing options. Following initial consultation, target lines of business were identified that could form part of a wider risk financing review. 

After assessing historical data, risk appetites and retention capacity a feasibility report was prepared for the client. The feasibility report focused upon the quantitative and qualitative benefits a captive can deliver and ultimately formed a blueprint for the establishment, licensing and operations of a viable and a financially attractive vehicle for existing and wider parts of the group. 

The feasibility was substantiated with: a domicile review, capital requirements, ownership structure assessment, approximate economic value of the operation and five-year financial projections for all viable classes of insurance. Following a recommendation to establish a captive insurer, we were able to provide full insurance management services to deliver the captive’s strategic goals.

OUR GLOBAL REACH

Captive Insurance

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