Achieve proactive risk management by utilizing captive security systems.
As a means of self-reliant risk management, we propose that our clients establish their own captive insurance companies.
A captive insurance company operates by reinsuring a portion of the risks of the property and casualty insurance policies that your customers have. As an insurance company, a captive insurance company must hold capital equivalent to the total amount of risks it underwrites (a margin). The calculation of the total amount of risk and the required margin must be strictly managed in accordance with the accounting standards set by the domicile where the captive insurance company is established.
To maintain a healthy balance of revenue and expenses for a captive, it is essential that the client's business, which is the source of the risks invested, makes efforts to suppress the occurrence of damage incidents. Through the self-holding of risks by the captive, it is expected that the client's risk management will be further strengthened, and overall business governance will be enhanced.
It is also possible to transfer risks underwritten by a captive to the re-reinsurance market (retro session). Even for risks located in countries with strict insurance regulations, such as Japan, it is possible to secure a highly competitive and abundant insurance capacity by directly purchasing retro reinsurance from the global market through a captive located in a domicile with relatively lax insurance regulations.
Our company supports our clients' decision-making regarding the establishment of a captive insurance company by profiling the risks to be included in the captive, formulating establishment policies (selection of a domicile), and conducting feasibility studies (simulation of the captive's revenue balance). We also support the entire process from the establishment and operation of the captive to local accounting and auditing.