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-
Reduction
or stabilization of insurance costs
-
Improved
control on friction costs
-
Retention
of potential underwriting profits and investments
income
-
Smoothing
out of insurance market fluctuations
- Direct
access to worldwide
professional reinsurers
- Increase
in programme alternatives
- Opportunities
to obtain rates and conditions in line with individual
loss record
- Long-term
and stable capacity
- Stronger
position for negotiation and arbitrage
- Better
risk management control
- Tailor-made
programmes
and policies
- Centralization
of the corporate worldwide insurance programme
- Better
risk awareness
and greater emphasis on loss prevention programmes
- Top
management commitment
- Lower
dependency on insurance cycles
- Funding
vehicle for otherwise unavailable or uneconomical covers
- Centralization
of management and financing of retentions
- Favorable
loss-reserving
which can lead to a greater capacity to retain risks
- Potential
accounting and tax advantages
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