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Introducing Captives

The Role of a Fronting Company

A fronting company is simply defined as a licensed insurer that issues policies in circumstances where the captive is not legally able to; and which passes all or the majority of the risk to the captive company and other reinsurers.

The Different Types of Captive

As every company looking to form a captive will have a different requirement and budget from another, there are different types of captive available.

Why Form a Captive?

If sufficient income can be developed to meet costs and profitable underwriting results maintained, assuming risk through a captive can bring numerous advantages to corporations.

A Brief History of Captives

The emergence of captives as we know them today is thought to have first taken place following the Hurricane Betsy disaster in 1965 and then again in the mid-seventies.