A captive insurance company (referred to simply as a ‘captive’) is an insurance company that is set up and wholly owned by a non-insurance company to act as a direct insurer or reinsurer for the parent company and its subsidiaries.
The primary purpose of a captive is to reduce the company’s total cost of risk. Captives are often used as an integral part of a company’s international insurance program but can also cover local risks or be used in a purely domestic structure.
The principal benefit of a captive insurance program is delivery of greater flexibility and control over the parent company’s risk management strategies and costs. A captive can be used to insure almost any of its parent’s exposures, from traditional property and casualty coverages to employee benefit programs.
With 30 years of global experience in serving customers with captives, Zurich is an acknowledged leader in captive services, from transparent, efficient cross-border cash flow services to dedicated claims and regulatory compliance. Zurich serves approximately 500 captive-fronting programs globally, assisting captive owners with tailored solutions for a wide range of complex risks, delivering innovative solutions based on customer needs, feedback and market insights.
Zurich’s approach to the delivery of captive services is distinctively customer-led. We offer a wide range of holistic non-life, life and combined captive solutions customized to the needs of each individual captive owner, provided with the deep technical expertise and knowledge of a team of dedicated captive services specialists. We listen to the needs of captive owners and respond with innovative, combined captive solutions fully supported by end-to-end customer services, including:
The 2024 SAMA Excellence Award recognizes Zurich’s global customer relationship management as outstanding, not only in the insurance sector, but across industries. It’s the second win for Zurich.
In hard market, multinational firms are retaining more property risk. Many seek fronting deals with insurance companies to simplify compliance and placement.
Adding medical stop loss to an employee benefits captive can deliver more than cost savings; it can enhance access to group health data and diversify risk.
