After The Event (“ATE”) Legal Costs Insurance

This cover is written either directly or on a reinsurance basis. Vehicles providing this insurance are very often formed by solicitors seeking an additional income stream and either unable to buy the market cover they need, or finding the market reluctant to give adequate recognition for a strong claim record.

Motor Insurance

Under the Road Traffic Act, Third Party motor insurance must be provided by a rated market insurer. However, a captive can positively contribute towards the placement of the risk in the market by providing a deductible infill cover that dovetails with the market placement. We have extensive experience in putting together these structures, which can result in premium savings and, where the business has a strong risk management regime, underwriting profits. .

Professional Indemnity (“PI”) Insurance

The PI insurance market is becoming increasingly expensive, as the business environment becomes increasingly litigious. A captive can often provide cover for the “attritional losses” which occur in the primary layer of insurance and can cushion the business from the impact of increasing market rates. .

Property Damage/Business Interruption (“PDBI”) Insurance

Whether a business with a small factory and offices or as the owner of a portfolio of multiple properties covering a range of uses from flats, office spaces, entertainment and retail, a captive vehicle can become an effective part of the PDBI insurance programme, bringing financial reward for effective risk management. There are different ways in which a captive can act, for example as a direct insurer combined with the purchase of reinsurance for losses above certain amounts, or alternatively as a deductible infill insurer, whereby the captive would essentially insure the deductible in the market policy. We would be pleased to assist in determining the most suitable captive structure for your individual needs.

Employers Liability (“EL”)/Public Liability (“PL”)

There is a statutory requirement to have EL insurance in place that involves using a market insurer; however, a captive insurer could still participate in the programme, as either a reinsurer or a deductible infill insurer sitting under the market insurance policy. Similar structures could also be undertaken with PL cover. Notwithstanding the possible underwriting profits, the captive structures can assist with the maintenance of liability claims records and in identifying any trends.

Kidnap & Ransom (“K&R”) Insurance.

By its very nature, K&R insurance is highly confidential and a captive can provide discreet cover, which is generally reinsured in the insurance market. The flexibility provided by the captive can allow a business to provide cover in previously inaccessible regions.

Employee Benefits (“EB”) Insurance

A national or multinational company, with a significant volume of employees could generate sufficient EB premiums to make captive participation in an EB programme viable. The captive could provide reinsurance capacity to a global network of fronting insurers in a variety of different structures. The presence of a captive reinsurer would allow access to extensive data regarding the nature and quantum of medical claims; ascertain the overall impact they are having on claims costs, as well as participating in underwriting profits.