Beyond Single-Parent: Bermuda’s Group Solutions

A single-parent captive – established by a parent organisation to insure or reinsure the risks of its owner or affiliated entities – is the most traditional form of captive insurer. As the reader may appreciate, captive insurers take many other forms, including group or association captives, which are regulated insurance companies owned and controlled by organisations that come together to pool their premium contributions, capital, and risk, within a single vehicle. The members are typically unrelated entities that share a common industry, risk profile or strategic objective.

The fundamental objective of a group captive insurer, like any other captive insurer, is to retain and manage risk through a dedicated regulated vehicle, affording greater control over the insurance programme, direct access to the reinsurance market, and the ability to tailor coverage to specific needs. However, it is the collaborative approach to risk financing that may yield greater results in the context of a