Page 86 - Reinsurance Management IC85

Reinsurance Management

Association captives:
An established association generally forms this
type of captive. The coverage is provided to its
members. In this the ownership vests with the
association or individual members. The financial
expert at the association level looks after the
operation or this responsibility is outsourced to
a management company, consultant or a broker.

Industry captives:
An industry captive is owned by industries
with similar specific insurance problem. The
shareholders to whom the company is required to
report appoint a board of directors.

Agency captives:
An agent or group of agents owns this particular
company. These are formed such that their clients
can participate in the programs.

Rent-A-Captives:
The risks of the members are insured. The
investment income and underwriting profits are

Sashi Publications - www.sashipublications.com 85

ight@ The Insurance Times. 09883398055 / 0988338