Term Of The Day – Insurer Sponsored Agency Captive
These types of captives are sponsored by very large insurance carriers. They are almost a hybrid type of captive as the operation is borrowed from an agency captive and a cell captive. On the surface, they seem like any other captive. However, there are major differences
The mega-insurance carrier will usually set up a very large captive in one of the offshore domiciles that allow the least regulated operations. The insurer will provide all of the usual captive services such as fronting, etc. The insurance agencies buy part of the captive shares which requires them to place a minimum amount of business with the agency captive.
©J&L Risk Management Inc Copyright Notice