Green Island
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Green Island is a treaty reinsurance arrangement available to Marsh clients. Green Island enables captive insurance companies to diversify their underwriting portfolio. Through a pooling mechanism, participating captives ‘share’ their loss experience by transferring a portion of their risk in exchange for assuming the risks of other participants in the treaty. By accepting other participants’ risks, participating captives can diversify their underwriting portfolio by writing unrelated premium.

In addition to providing captives with risk diversification, participation in Green Island may result in a reduction in the variability of expected losses for individual members as each member will be writing a smaller portion of a large pool of losses. This potential benefit has been proven time and again for individual members over the life of Green Island. The reduction in loss variability produced by the pooling mechanism is designed to stabilize cash expenditures on losses assumed by participants.

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