Captive implementation is one of the premier alternative risk finance solutions—one enjoyed by many Fortune 1000 companies and now, increasingly, by midsize and other smaller organizations.

Marsh Captives Solutions mission is to help our clients thrive by providing leadership, knowledge, and solutions worldwide. Our more than 495 professionals, located in every major domicile, manage over 1,260 captives worldwide. With established relationships with key service providers and all the major re-insurers, Marsh provides specialized expertise and strategic resources that help clients to create comprehensive, results-focused solutions for all their risk management needs.

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.
• Tax and economic benefits are possible at both the state and federal level.
• 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.