Once the preserve of the corporate world, more high net worth clients, private family offices and successful enterprises are realising the benefits of forming their own insurance company to insure their assets. Conventional insurance frequently fails to meet the needs of our target market. This is usually due to price, cover and service, hence taking control of these elements through the ownership of their own insurance company has significant appeal.
The following is a summary of the main benefits afforded by a captive:
- Cover.
- Control.
- Reduced Costs.
- Improved Cash Flow.
- Flexibility.
- Risk Management.
- Wealth Generation and Preservation.
- Investment Income.
- Matching of Revenue and Expense.
- Separate Profit Centre.
- Separate Revenue Source,
- Predictability.
- Broader and simpler insurance contracts.
- Flexible Program Design.
- Coverage for risks not usually insurable.
- Use of preferred claims handlers.
- Reduced reliance on the commercial insurance market.
- Improved Risk Management Processes.
- Bespoke Surety for Institutional Debt Issues.
At this difficult time when capital is scarce right across the world, and insurance premiums firming to unknown previous high levels, it is the UHNWs / PFOs who remain best placed to assume greater control of their risk management and cost controls, leading to there never being a better opportunity for UHNWs / PFOs and successful enterprises with strong balance sheets, to benefit from the considerable advantages of establishing their own Captive.
UbiCap Solutions Ltd has direct experience in designing, establishing and managing Cells of a Captive PCC (Protected Cell Company). It works with its clients to assist them, acting as principal, to build and develop their own captive insurer.
The initial establishment of the client’s captive cell is often driven by the need for insurance coverage based on a debt issuance, and then leads to wider use and application within the clients personal and business interests.