Programs

Captive Formation & Management

Through our brokerage division, Chandler Insurance Managers, Inc. (CIMI), we can help evaluate the risks and benefits associated with forming a captive insurance entity to insure or reinsure the risks of non-insurance companies, groups and associations. Typically captives are reserved for single entities with large capital generating abilities or to a homogenous group of companies in the same industry that can pool together to raise capital and start their own captive insurance company. Because of our relationships with some of largest reinsurers in the world and because of our understanding of how to create and operate an insurance company, we have the means and ability to develop and manage a captive insurance company for your business.

A captive insurance company was originally defined as a wholly owned or controlled subsidiary company formed primarily to insure or reinsure the risks of its non–insurance parent or affiliates. The term has been expanded to include mutual companies and those owned by groups of companies or associations usually operating in the same industry or profession. There are several forms of captive insurance companies with the most common being: 

• Single Parent Captive-a wholly–owned subsidiary insurance or reinsurance company formed primarily to insure the risks of its non insurance parent or affiliates.
• Group Captive-a company jointly owned by a number of investors who usually have common insurance needs. 
• Association Captive-a company owned by a trade, industry or service association for the benefit of its members. A captive reinsurance company is when an unrelated conventional insurance company (fronting carrier) assumes the initial risk and reinsures up to 100 percent with the captive reinsurance company on risks provided by the parent company, group or association captive members.

Formation of a “captive” or offshore reinsurance company might be the creative insurance solution for you. CIMI will guide you through the positives as well as the negative aspects as they relate to your situation and your specific needs. Assistance is available for incorporation and licensing as is help with the day-to-day operations of the insurance company. Regular financial and statistical reports will be provided which show all statutory, insurance, banking and accounting requirements of the newly formed company. 

CIMI, working with affiliate companies, can provide a full range of captive services including captive management, reinsurance, underwriting, loss control and claims administration. CIMI can give you a turnkey price for your captive operation. If you are interested in seeking an alternative risk program such as a captive, contact us to discuss.