| A Captive Insurance Company is
set up to receive insurance premiums from its Parent in exchange for risk cover.
The captive selects the categories and degrees of risk to cover with its premium
surplus, and re-insures the balance. Corporations are now improving
their risk management and financing techniques by locating their captive
insurance companies in an offshore jurisdiction, thus avoiding complex
legislative restrictions and high levels of taxation.
Corporations can either form
their own captive insurance company or participate in a shared captive.
Protected Cell legislation can enhance the features of this
shared concept. Frontfin Insurance Limited PCC, our own Protected Cell
Captive Insurance company is available to selected clients.
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