So, you are interested in forming a captive insurance company.
Perhaps your company wants to benefit from the lower cost of
insurance when compared with premiums paid to third-party insurers;
or perhaps you need to obtain insurance for a type of risk that is
proving difficult to cover in the commercial insurance market. In
any event, you believe that a captive insurer is the answer to your
problems – you just need to know what to do next. This
article examines some of the key aspects of setting up a captive
insurer in Bermuda.
Feasibility study
Generally, when thinking about entering the world of captive
insurance, a company will engage a risk management expert to
perform a detailed review of its business, including an assessment
of the company's risk profile and its objectives. While the
formation of a captive insurer may be an excellent risk mitigation
tool, it is not necessarily the correct solution for everyone and
so the completion of a feasibility study will
