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Although
there is no such thing as a standard client for the captive
solution, some factors may reflect the predisposition of an
enterprise to adopt such a solution and consequently to have
an interest in investigating further the potential benefits
and possible obstacles.
Hence
a captive can be appropriate when a company faces the following
requirements :
- Centralize
control on multinational exposures
- Find
alternatives to insurance market restrictions
- Take
advantage of low loss record
- Finance
increased retentions
- Create
a profit center for risk management
Moreover,
compliance with some criteria will ensure the economic viability
of the structure, as for example:
- Sufficient
premium inflow in the captive (around € 1 Mio), which
may correspond either to the premiums currently paid or
to the potential amount of premiums after inclusion of currently
uncovered risks
- Financial
strength of the parent company : healthy balance sheet allowing
some degree of risk retention
Based
on its experience Gecalux Group can help any company to review
and appraise all relevant elements prior to entering into
a feasibility study.
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