Did you know that 75 to 80 percent of all Fortune 500 companies have a captive? A captive solution could be the right tool for many larger companies to face the world of risk on its own terms—and come out ahead.
Marsh Captives Solutions' mission is to help our clients thrive by providing leadership, knowledge, and solutions worldwide. Marsh provides specialized expertise and strategic resources that help clients to create comprehensive, results-focused solutions for all their risk management needs.
Captive Solutions at a Glance
Several factors distinguish Marsh Captives Solutions:
- more than 1,260 captives managed worldwide;
- more than 495 captive professionals located in every major domicile;
- established relationships with key service providers and all major reinsurers; and
- developed the first-in-market Global Captive Benchmarking Report.
Marsh offers state-of-the-art captive solutions that provide:
- lower premiums;
- extended coverage that may not be available through commercial outlets;
- tax advantages;
- realization of revenue from premium investments;
- greater accountability in managing your total cost of risk; and
- enterprise risk management and corporate governance.
Once viewed primarily as a solution to counter rising premium costs, captives actually offer many potential benefits that are difficult to match:
- Captives are designed to enhance your ability to manage the retentions and deductibles associated with traditional risk transfer programs. By forming its own subsidiary insurer to handle much or all of its own risk—a company is freed from the control and restrictions of the commercial insurance market.
- The flexibility to fund not only traditional coverages—such as general liability, workers’ compensation, auto liability, property insurance, employee benefits—but also difficult-to-insure exposures—such as environmental risks and employment practice liabilities.
- The ability to design your coverage as you need it, not as outlined by a commercial insurer. Your coverage can be broader, policies simpler, and risks more manageable. A captive also helps to facilitate the most effective claims-handling methods and loss-control programs.
- Creating a self-owned insurer, such as a captive, may offer the benefits of greater control and reduced costs, both of which have a significant impact on your economic security and profitability.
- Captives may provide significant revenue benefits. Premium payments are made directly to your captive, allowing reserves for unpaid claims and unearned premiums to be invested, offering you the ability to establish reserves from pre-tax income otherwise unavailable to a non-insurance entity. These revenues further strengthen the captive itself, eventually positioning the entity for more favorable reinsurance opportunities.
Our professionals work with you every step of the way, from the incorporation of your captive through its active day-to-day management, with a wide variety of offerings—including accounting, insurance, claims, personnel, and management information services. Marsh also holds established relationships with key service providers such as auditors, lawyers, and actuaries to help you run your captive smoothly, cost-effectively, and with the strategic and financial benefit most appropriate for your business.