Rent-A-Captive

ALTERNATIVE RISK TRANSFER: RENT-A-CAPTIVE

A Willingness to Share the Risk

Do you take a long-term view of property loss prevention? Would you be willing to share some risk? Then you may be interested in our Rent-A-Captive alternatives to risk transfer.

Alternative risk transfer has many potential benefits, including reduced operating costs and pricing, and coverage stability. Instead of relying on traditional insurance, the captive owner has more direct management over the premium. For example, the captive owner could earn income from the investment of the funds or retain the potential underwriting profit. You can establish your own captive company, or use an existing facility.

FM Global is uniquely qualified to offer Rent-A-Captive. Continue reading to see if the captive option makes sense for your company.

OUR CAPTIVE SUBSIDIARIES

Get alternatives to the traditional risk-transfer market through our two subsidiary companies, the Watch Hill Insurance Company and New Providence Mutual Ltd. Both are Rent-A-Captive facilities that give you the benefits of a captive insurance company without the upfront costs, capital investment and significant maintenance costs associated with forming an owned captive.

Watch Hill Insurance Company

Watch Hill is a sponsored, protected captive cell, controlled corporation that serves as FM Global’s onshore captive option in North America. The company was established in the state of Vermont, the largest domicile for captive insurance companies in the US, to meet the needs of clients in North America who want to keep their financial interests onshore.

New Providence Mutual Ltd. (NPML)

A protected captive cell, controlled corporation based in Bermuda. It provides clients with a stable offshore political environment, along with an established insurance, reinsurance and banking infrastructure.

Is a Captive Cell Right for You?

If you’re looking for all the benefits of a captive but aren’t ready to invest in an owned captive, a captive cell solution can be a fast and easy alternative. Here’s how it works: Your company “leases” a protected captive cell. The financial arrangement includes working capital, surplus and licenses from a captive owned by FM Global. We also arrange the necessary administrative, claims, engineering, reinsurance placement and admitted fronting services. Under the segregated/protected cell structure, there is no pooling of risk between cells.

For most clients, FM Global is able to establish a captive cell within just a few weeks. It’s easy to set up and control, regardless of size. Administered by an expert third party, it provides similar benefits to an owned captive, only without the complexity, upfront investment, capital requirement and maintenance requirements.