Offshore Insurance Services Flashcards
1
Q
Outline the offshore insurance sectors
A
Domestic Insurance
International insurance
Insurance Intermediaries
2
Q
What does International insurance consist of?
A
Captive Insurance
Commercial Insurance
Life insurance & EBTs
3
Q
Define insurance business
A
ATE insurance, credit insurance, professional indemnity insurance & reinsurance and transformer cells
4
Q
What is Captive Insurance
A
An insurance company which is a subsidiary formed to insure or reinsure the risks of its parent/ group of companies
Formed to provide alternative risk management solutions
Company retains portion of overall risk & reinsurer retains the remainder
GSY leading domicile in Europe
5
Q
Outline advantages & disadvantages of Captive Insurance Companies
A
Advantages
- offshore high level of expertise
- own premises/ cost effective
- access to reinsurance/ flexibility/ spread risks
- provide cover unavailable normal insurance policies
- tax effective
- less bureaucratic & faster
Disadvantages
- expenses/ capital commitment
- exposure to risk / sustainable losses
- delegation from parent company/ require qualified & experienced staff - expertise
