Captive Management & Risk Solutions
Expertly designed to streamline risk management, reduce costs, and enhance global financial control for businesses.
Captive management involves creating and managing a captive insurance company that a business can use to self-insure its risks. Captives provide an efficient way for businesses to manage risk better, reduce insurance costs, and create tailored insurance solutions. By forming a captive, companies gain more control over their insurance needs, improve cash flow, and access potential tax benefits. Captive structures can be highly flexible, allowing them to be adapted to changing business environments and regulatory frameworks. Our expert team guides businesses through the entire captive lifecycle, from initial feasibility studies to ongoing management and regulatory compliance, ensuring optimal performance and financial stability.
Our expertise. Captive Management & Risk Solutions
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Feasibility Study and Captive Formation
We begin with an in-depth feasibility study to determine if a captive insurance company aligns with your business objectives. This involves analysing your organisation’s risk profile, identifying potential cost savings, and evaluating whether a captive is the right strategic fit. We consider factors such as your risk appetite, existing insurance arrangements, and financial goals to ensure a clear understanding of how a captive can benefit your business.
If a captive is deemed viable, we manage the entire formation process. This includes securing the necessary licences, fulfilling legal requirements, and structuring the captive to align with both local and international regulations. Our expertise ensures the setup is seamless, compliant, and tailored to your organisation’s needs. By handling every detail, we enable you to focus on leveraging the advantages of your captive from day one.
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Underwriting and Risk Management
Effective underwriting and risk management are at the heart of a successful captive. Our team works closely with your organisation to evaluate unique risks and develop bespoke insurance policies through the captive. We utilise industry best practices to ensure that the captive is adequately capitalised and structured to address the specific risks your business faces.
This process enhances not only your organisation’s risk awareness but also its ability to manage those risks proactively. By tailoring coverage to your precise needs, we help safeguard your business against potential vulnerabilities. Additionally, our ongoing risk management support ensures that your captive remains resilient, adaptable, and well-positioned to meet evolving challenges, providing peace of mind and long-term security.
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Financial and Compliance Management
Ensuring financial stability and regulatory compliance is critical to the successful operation of a captive insurance company. We provide comprehensive financial management services, including accounting, audit coordination, and detailed financial reporting. Our proactive approach ensures that your captive remains solvent and fully compliant with international standards.
In addition, we monitor and manage all regulatory requirements, ensuring your captive adheres to the specific rules of its domicile. This includes maintaining appropriate capital reserves, filing timely reports, and meeting ongoing compliance obligations. Our robust financial oversight supports your captive’s performance while keeping all stakeholders informed and confident in its operations.
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Claims Management and Loss Control
A well-structured claims process is vital to the smooth operation of your captive. We offer end-to-end support in claims management, ensuring every claim is handled efficiently and fairly. From adjudication and reserving to settlement processes, our team works to minimise delays and ensure transparency at every stage.
In addition to managing claims, we implement loss control programmes designed to reduce the frequency and severity of future claims. By proactively identifying risks and introducing preventive measures, we help protect your captive’s financial health. This dual approach—efficient claims handling and effective loss control—ensures your captive operates with maximum efficiency and reliability.
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Captive Optimisation and Reinsurance
As your captive matures, continuous optimisation is essential to maximise its performance. We regularly review the captive’s operations, analysing financial results and identifying opportunities for improvement. This may include refining coverage, adjusting capital allocations, or exploring alternative structures to enhance efficiency.
Reinsurance is a key element of optimisation. We provide strategic advice on reinsurance solutions, helping your captive mitigate risks and manage exposure. By leveraging reinsurance effectively, your captive can reduce volatility, stabilise costs, and improve its overall financial position. Additionally, we explore ways to optimise tax treatment and ensure capital is deployed efficiently, enabling your captive to deliver lasting value to your organisation
We begin with an in-depth feasibility study to determine if a captive insurance company aligns with your business objectives. This involves analysing your organisation’s risk profile, identifying potential cost savings, and evaluating whether a captive is the right strategic fit. We consider factors such as your risk appetite, existing insurance arrangements, and financial goals to ensure a clear understanding of how a captive can benefit your business.
If a captive is deemed viable, we manage the entire formation process. This includes securing the necessary licences, fulfilling legal requirements, and structuring the captive to align with both local and international regulations. Our expertise ensures the setup is seamless, compliant, and tailored to your organisation’s needs. By handling every detail, we enable you to focus on leveraging the advantages of your captive from day one.
Effective underwriting and risk management are at the heart of a successful captive. Our team works closely with your organisation to evaluate unique risks and develop bespoke insurance policies through the captive. We utilise industry best practices to ensure that the captive is adequately capitalised and structured to address the specific risks your business faces.
This process enhances not only your organisation’s risk awareness but also its ability to manage those risks proactively. By tailoring coverage to your precise needs, we help safeguard your business against potential vulnerabilities. Additionally, our ongoing risk management support ensures that your captive remains resilient, adaptable, and well-positioned to meet evolving challenges, providing peace of mind and long-term security.
Ensuring financial stability and regulatory compliance is critical to the successful operation of a captive insurance company. We provide comprehensive financial management services, including accounting, audit coordination, and detailed financial reporting. Our proactive approach ensures that your captive remains solvent and fully compliant with international standards.
In addition, we monitor and manage all regulatory requirements, ensuring your captive adheres to the specific rules of its domicile. This includes maintaining appropriate capital reserves, filing timely reports, and meeting ongoing compliance obligations. Our robust financial oversight supports your captive’s performance while keeping all stakeholders informed and confident in its operations.
A well-structured claims process is vital to the smooth operation of your captive. We offer end-to-end support in claims management, ensuring every claim is handled efficiently and fairly. From adjudication and reserving to settlement processes, our team works to minimise delays and ensure transparency at every stage.
In addition to managing claims, we implement loss control programmes designed to reduce the frequency and severity of future claims. By proactively identifying risks and introducing preventive measures, we help protect your captive’s financial health. This dual approach—efficient claims handling and effective loss control—ensures your captive operates with maximum efficiency and reliability.
As your captive matures, continuous optimisation is essential to maximise its performance. We regularly review the captive’s operations, analysing financial results and identifying opportunities for improvement. This may include refining coverage, adjusting capital allocations, or exploring alternative structures to enhance efficiency.
Reinsurance is a key element of optimisation. We provide strategic advice on reinsurance solutions, helping your captive mitigate risks and manage exposure. By leveraging reinsurance effectively, your captive can reduce volatility, stabilise costs, and improve its overall financial position. Additionally, we explore ways to optimise tax treatment and ensure capital is deployed efficiently, enabling your captive to deliver lasting value to your organisation
The benefits of choosing Exance Captive Management & Risk Solutions
Smarter
Solutions
A+ to unrated, we have paper to match your specific requirements
Proven
Track Record
A trusted reputation for excellence and long-term client success
Exceptional
Underwriting
Comprehensive coverage with flexible custom risk solutions
Got a complex challenge?
We can help you find a better solution.
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Mark Griffin Dip CII MCMICEO
LinkedInEmailBiographyMark Griffin Dip CII MCMI
CEO
With over 30 years in insurance, Mark brings comprehensive leadership experience across underwriting, claims and strategic growth. Beginning at General Accident, he played a key role in the CGU and Norwich Union merger to form Aviva. During 11 years at NHBC, he focused on structural warranty products and building construction sector relationships. As CEO of Exance, Mark’s deep industry knowledge and track record in underwriting excellence drives our strategic growth and development of strong insurer partnerships.
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Jordan CampHead of Operations and Distribution
LinkedInEmailBiographyJordan Camp
Head of Operations and Distribution
Jordan’s career began in niche insurance sales, building deep client relationships across diverse sectors. Over the past decade, he has helped insurers expand their distribution channels and product offerings in specialist markets. As Head of Operations & Distribution at Exance, he focuses on developing strong broker and insurer partnerships while ensuring our products meet market needs. His approach balances growth with operational excellence as we strategically expand our team.
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Duncan UrquartHead of Construction and Surety
LinkedInEmailBiographyDuncan Urquart
Head of Construction and Surety
With over 35 years in construction insurance and surety, Duncan brings exceptional expertise to Exance. Most recently as Head of Construction Underwriting at Specialty MGA, he built a successful construction portfolio achieving USD 9.4M GWP. His career spans senior roles at Willis Towers Watson, Lockton, Marsh and Sedgwick, where he developed deep expertise in programme design, risk assessment and portfolio management. Duncan’s proven track record in building successful teams, implementing effective risk controls and maintaining strong loss ratios makes him ideally positioned to lead Exance’s strategic growth across multiple lines.
Frequently Asked Questions
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What is a captive insurance company?
A captive insurance company is a licensed insurance company formed to insure the risks of its parent company or a group of companies. The insured parties own it and allow businesses to have greater control over their insurance needs, risk management, and finances. By self-insuring through a captive, companies can reduce reliance on commercial insurers, customise their coverage, and potentially gain tax advantages.
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Is captive insurance "self-insurance"?
Captive insurance is a form of self-insurance but with more structure and regulation. In a self-insurance model, a company assumes all risks without forming an insurance entity. In contrast, captive insurance involves creating a licensed insurance company that operates like a commercial insurer but only covers the risks of the parent or group of businesses. The captive is subject to regulatory oversight, must meet capitalisation requirements, and provides more formalised risk management and financial strategies than traditional self-insurance.
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How do I know if my company should form a captive?
A feasibility study is the first step in determining if forming a captive is the right decision for your business. This assessment reviews your company’s risk exposure, insurance costs, and financial objectives. A captive could be beneficial if your company has sufficient risk, enough premium volume, and a desire for more control over insurance. We help you evaluate the potential cost savings, risk management benefits, and regulatory considerations.
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What are the different types of captives?
There are several types of captives, including single-parent (pure) captives, group captives, and rent-a-captives. Single-parent captives are owned by one company, while group captives are shared among multiple businesses. Rent-a-captives allow businesses to use an existing captive structure without forming their own. The right choice depends on your company’s size, risk exposure, and financial goals.
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How is a captive regulated?
Captive insurance companies are regulated by the jurisdiction in which they are domiciled. Each domicile has its own set of regulations, covering areas such as licensing, capitalisation, solvency requirements, and reporting obligations. We assist clients in selecting the best domicile based on their regulatory needs and guide them through compliance with local and international laws.
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What are the big challenges with captive insurance?
Captive insurance comes with several challenges. One of the main challenges is regulatory compliance, as captives are subject to strict regulations based on the jurisdiction in which they are domiciled. Maintaining adequate capitalisation and solvency margins can also take time and effort. Also, captives require robust governance and operational oversight, involving ongoing management, audits, and financial reporting. Balancing risk and reward, ensuring profitability, and managing claims effectively are other key challenges that businesses must navigate.
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What are the tax implications of a captive?
The tax treatment of a captive can vary depending on its domicile and structure. In some cases, captives may benefit from favourable tax treatment on insurance premiums and investment income. However, tax benefits should not be the primary motivation for forming a captive. We work with tax advisors to ensure your captive’s structure maximises efficiency while complying with all applicable tax laws.
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How much capital is required to form a captive?
The amount of capital required depends on the captive and the jurisdiction in which it is formed. Typically, the regulatory authority will determine the minimum capital requirements based on the insured risks and the domicile’s solvency regulations. We assist in calculating the necessary capital, ensuring the captive meets regulatory expectations while maintaining optimal financial efficiency.
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What are the ongoing costs of managing a captive?
Managing a captive includes costs such as regulatory fees, administration, accounting, auditing, and legal services. The size and complexity of the captive will influence these expenses. We provide transparent pricing and work with clients to ensure ongoing costs are predictable and manageable, allowing them to focus on the long-term benefits of captive ownership.
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Can a small company benefit from a captive?
Yes, smaller companies can benefit from captives, particularly through group captives or rent-a-captive arrangements. These structures allow smaller businesses to access the advantages of captive insurance, such as cost savings and customised coverage, without creating a captive from scratch. We can help assess the best option for your business size and risk profile.