Licenced as registered agents to Captive Insurance and Re-Insurance Companies in Nevis and working with licenced Insurance Managers known to us Trust Services (Nevis) Limited can make available to its clients the many insurance and financial benefits that can be realised through the use of a captive insurance programme that centres on providing the client with more control over insurance and administrative costs and the return of potential underwriting profit and investment income earned on reserves.
Among the many benefits that a properly managed captive insurance programme can offer are:
- Lower transaction costs and administration expenses compared to traditional insurance programmes.
- Through the retention of underwriting profit and investment income earned on loss reserves, the net cost of insurance can be reduced.
- Maximization of the benefits of effective cash management through being able to control the flow of funds to and from the captive leading to a more efficient use of capital.
- Improved coverage by using custom designed policies specially tailored to the needs of the insured, for exposures that are either not available or unaffordable in the traditional market.
- Direct access to reinsurance markets wherein a captive can secure competitive bids from a broader market, increasing the opportunity of negotiating price and contract terms.
- The provision to multinational companies of the opportunity to use the captive as a mechanism to better consolidate the insurance needs of their international operations into one co-ordinated programme.
- Protection from pricing swings that periodically occur in the traditional marketplace thus providing a more equitable rating, pricing and limits over the long term.
- Paying the losses only of its parent and affiliates, the captive provides a focus on improving safety and loss control programmes since funds not paid out in losses are retained by the captive.
- Control over the timing and payment of claims.
- Through an independently managed captive programme, a parent can retain the service providers such as fronting carriers, reinsurers, claims specialists, loss control experts, managed care firms, investment advisors and bank relationships of its own choice, ones that are best suited to meet the client’s specific needs.
In addition to the foregoing there are potential taxation and asset protection benefits that are available through a captive insurance company. Depending on the tax residence of the user and how ownership of a captive is structured, premiums can be tax deductible by the insured, the captive can be subject to little or no income tax on underwriting profits and future distributions from the captive may be possible with little or no tax consequences. Also self insured risks may be converted into deductible expenses when underwritten by a group captive.