Insurance Products and Services - Insurance Alternatives

  Insurance Alternatives

For companies that experience high insurance premiums without associated losses, there may “Alternative Risk Transfer” mechanisms available to aid in their risk management functions and financing. Guam law allows for the establishment of captive insurance companies and risk retention groups. Considering related thresh-holds for financial feasibility of these options, your company might benefit from stabilized insurance premiums and coverage, improved cash flow, access to global reinsurance markets and more efficient claims handling.

Captive Insurance: A Captive Insurance Company is a company that insures the risks of its parent company, its subsidiaries and affiliate companies, including customers and suppliers. For companies that meet the premium thresh-hold, between $500,000 and $1,000,000, and experience minimal losses, a captive might prove feasible. Because it is a legitimate insurance company, the captive provides the claims, underwriting, investment and loss control functions of a traditional insurance company. The main difference is in the control of expenses now offered. Takagi & Associates offers full captive insurance design and management functions. Contact our Risk Management Consultants to discuss this insurance alternative.

Risk Retention Groups (RRG):An RRG is an insurance company organized by a group of businesses or institutions in the same line of business to provide liability insurance for the owners or organizers. As permit¬ted by federal legislation passed in 1986, such a group is eligible to provide insurance for its members in any state after being licensed in any one state, Guam Law allows for the establishment of RRGs and Captives.