Captives and Group Programs

Many large organizations are able to take advantage of consolidating the buying power of their individual companies in global locations to secure favorable pricing and policy structure through the use of captives.

A captive is an insurance company formed by an industrial or commercial group to insure some or all of the group's risks. The captive concentrates buying power with the insurance market on behalf of its owners, manages group risk retention, and reduces premium payments to third parties to a minimum.

For a captive to operate successfully, a broad spread of receivables is required. In the right circumstances, the benefits of using a captive can be substantial, reducing costs and improving the quality of coverage. The credit insurance market can be used to provide reinsurance support, with the option of either using the credit limit processes of the specialist underwriters or following the catastrophe approach, in which cover is geared to the internal judgment and procedures of the insured.

Marsh specializes in captive policy design for multinationals and routinely places business with traditional and emerging underwriters.