Fiona Le Poidevin, Chief Executive of Guernsey Finance,
explores how captive insurance offers a new revenue stream for
brokers.
I am sure that brokers, like the rest of us, are eager to tap
into any possible additional flows of income. Those that are, will
be very interested to learn more about a potential new revenue
stream for their business offered by captive insurance.
The captive concept
A captive is an insurance company which is usually formed for a
specific purpose, primarily self-insurance. Captives can be
established through conventional limited companies, Protected Cell
Companies (PCCs) or Incorporated Cell Companies (ICCs).
A cell company, which is made up of a core and individual cells,
provides the advantage of a parent being able to write different
lines of business into individual cells or third parties being able
to own a captive and allocate individual cells to different
clients.
