Captive insurance is a fast maturing yet a relatively fresh insurance solution in terms of acceptance and usage by corporations and professional groups. Traditional insurance companies have a huge infrastructure and maintenance costs; your premiums pay for all of this along with your insured risk. A captive insurance company is the most convenient option for organizations that want to take financial control and manage risks by underwriting their own insurance rather through rigid third-party insurers.
Captive Insurances; among other reasons, help reduce the premium cost and at the same time enable great flexibility and customization. Over 90% of the Fortune 1000 companies manage their insurance needs through Captives.
Captives, depending on the need may cover single or multiple spokes an organization, General liability, employee health, environment liability, business operational risks, product liabilities and more.
Premiums for third party insurance are, in most countries, tax deductible irrespective of the nature of the insurance company. But captive insurances in these countries normally are not allowed for tax deductions until the funds are actually used to pay a claim. This is where Offshore Captive Insurances come into play; Along with the flexibility of drafting your own policy Offshore Captive Insurances are cost and tax effective.
There are four main types of Offshore Captive Insurance companies:
Pure Captive – A captive insurance company wholly owned by its parent and insuring only the risks of the parent organization.
Mutual Captive – A company set up to insure the collective risks of members of mutual organizations such as medical professionals, trade or industry associations.
Reciprocal Captive– A captive insurance company which undertakes self insurance on a collective basis under a general management structure.
Pure captive turned commercial underwriter or reinsurer – A Pure Captive entering the commercial insurance market by seeking external business.
AM Abacus has years of experience in helping our clients understand the product and use it to benefit them in the short and long term. The team is multi-lingual and multi-ethnic and comprise an eclectic mix of Chartered Accountants, Financial Services and Lawyers who are client focused and well networked
Abacus can provide end-to-end assistance with respect to your Offshore Insurance needs from the Set up to continual Administration. We offer Offshore Captive Insurance services in Seychelles, Mauritius Bermuda, Cayman Islands, Guernsey and British Virgin Island