Page 87 - Reinsurance Management IC85
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The Insurance Times
returned to the insureds. Under this, surplus of
certain companies are given on rent in order to
establish a self-insurance program and not their
own captive.
Protected cell companies:
These are special category of rent-a-captives since
they shield their capital and surplus from other renters
in the captive so long as the rent a-captive 's owner
remains solvent.
The benefits of a captive are as follows:
u Provides insurance for certain exposures, which
other insurance companies might not provide.
u Helps to retain the premiums within the group by
the parent company.
u Operating costs are reduced.
u There is an improved cash flow.
u There is an increase in coverage and capacity.
u Better investment as well as investment income.
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