InCrowd
Insurance Essentials for corporates

A captive is an insurance company established as a subsidiary by another (usually non-insurance) parent company, or a group of companies, to provide insurance coverage exclusively for the risks of its parent company and/or affiliated companies of its parent company. Captives are commonly used in order to:

• Optimise insurance cover with tailored policies and greater control over claims handling and risk management strategies.
• Reduce costs for insurance coverage.
• Have tax deductible insurance premiums (as opposed to non-deductible contributions to the capital reserves) at the insured company.
• Get access to the reinsurance market and possibly, by ‘bundling’ a group’s demand for insurance coverage, get better rates in the reinsurance market.
• Find insurance cover for ‘hard-to-place risks’, e.g. emerging risks, such as cyber and terrorism; risks which are excluded in the insurance coverage found in the market; or deal with other restrictions such as sanctions.

How we can help

• We track the regulatory landscape of captives in jurisdictions around the world. For example, in 2023, France introduced tax changes favourable to captives and in the UK, the government is consulting on establishing a UK captive regime.
• We support clients with every aspect of captive insurance, including handling risk-distribution and risk-shifting analyses, captive formation and corporate governance.
• We advise clients on the establishment, operation, relocation and utilisation of a captive as well as assist with insurance documentation and compliance with all issues affecting captives.