The Road to a Captive

The following is an outline of the complete process of captive establishment and the assistance that can be provided by the Marsh Captive Management Group:

Phase One - Feasibility

• Consultation to identify the parent's strategic aims and its tolerance to risk
• Collection, manipulation and analysis of loss data and exposure
• Preparation of a detailed feasibility and/or implementation study to include:
• the captive's role;
• appropriate retention levels;
• its impact on the insurance program's structure;
• guidance as to the most appropriate captive domicile;
• financial projections; and
• cost/benefit analysis.

Phase Two - Implementation

• Preparation of Memorandum and Articles of Association
• Assistance with the selection of local professionals to act as directors
• Appointment of auditors, bankers, solicitors, etc.
• Incorporation of the captive
• Provision of a registered office and compliance with legal and regulatory requirements

Phase Three - Ongoing Management

Insurance including:

• underwriting in accordance with the directors' policy;
• administration of insurance and reinsurance programs;
• preparation of all necessary documentation including policies; and
• claims handling and settlement.

Accounting including:

• payment and receipt of premiums;
• claims and recoveries;
• administration of operating accounts; and
• cash management and investments in accordance with the captive's investment policy.

Corporate including:

• maintenance of all records;
• management reports;
• financial statements and regulatory reporting;
• compliance with the laws of the captive domicile;
• secretarial support; and
• coordination of board meetings and provision of facilities.