Helping you realise the benefits of your captive.

Making the Most of your Captive

Today, more and more companies are exploring the many benefits of including both non-life and life risks in their captive programs. As an industry leader in captive services, Zurich draws on more than 30 years of experience to help you realise the benefits of your captive. 

What is a captive?

A captive is a subsidiary set up by its parent company and acts as a direct insurer or reinsurer for that company. The primary purpose of a captive is to reduce the total cost of risk and acts as an enabler to take better informed risk taking decisions.

Questions to consider when deciding if a captive is appropriate for you

If you answer ‘yes’ to most of these questions, a captive may be an attractive route to explore:

  • Do you think that global insurance markets overprice your organisation’s insurance cost as your risk is lower than average or assessed by underwriters?
  • Are you exposed to risks that are difficult or expensive to insure?
  • Do you want to earn an economic return on your organisation’s risk management policies and processes (that is, underwriting profit)?
  • Are you looking to create a self-funded loss-sharing mechanism for working losses that are covered by insurance?
  • Do you want to accept a large deductible while offering your business units a much lower deductible (as claims are expensive to administer, insurance premiums are most attractive where losses are large but infrequent)?
  • Do you want a transparent and centralized view of the risks each unit of your international organisation faces?
  • Do you want more control and flexibility on how to place your insurance as prices fluctuate during the hard and soft market cycles?
  • Does the regulation you operate under make a captive beneficial?
  • Are you looking to grow through acquisitions and want fast access to risk information on purchased companies?
  • Does your company take a long-term approach to risk management and do you value a longer term, risk and profit sharing partnership with your insurer?


Using a captive brings valuable benefits for multinational companies 

With 200+ single parent captive customers and over 400+ captive fronting programs, we have the expertise, global structures and processes to help you to implement solid captive solutions across borders. 

Better Decisions

Captives are providing claims insights and transparency. With a consistent overview of exposures and risk information, you can make more informed strategic risk management decisions and optimise the structure of insurance programs.

Broader Knowledge

A captive can help you increase awareness and knowledge of your risks, in particular regarding governance and compliance issues around the globe. Our unique captive fronting service offering is at the heart of latest developments, and we provide you stable captive fronting programs with a strong focus on compliance.

Cost Control

By creating a single, holistic platform for risk management, captives can improve cash flow management and investment returns, and offer overall premium cost savings. They are a well established tool to reduce an enterprise’s total cost of risk.


Consolidating risks into a captive can answer regulatory demands for high levels of transparency. With its state-of-the-art IT platforms Zurich is very well suited in providing you the necessary policy and claims information for your captive program.

What we do

Captive Fronting

Legislation in most countries requires that insurance coverage be provided by a locally admitted carrier. As reinsurance Captives are usually not licensed to issue local policies, the risks are initially underwritten by a fully licensed, local, direct insurer. Subsequently, the risks assumed by the direct insurer are ceded to the Captive on a reinsurance basis. This process is usually referred to as Captive Fronting.

Relevant components of the Captive Fronting process:

  • Risk transfer testing: Qualitative and quantitative risk transfer evaluation required for accounting purposes and to satisfy the operational definition of a Reinsurance Captive.
  • Arm's length principle: Ensure consistent determination and documentation of an at arm's length price for the portion of the risk ceded under the Captive Fronting transaction.
  • Credit risk exposure and collateral: Assessment of individual credit risk exposure for all Captive Fronting transactions and determination of collateral options that provide a cost effective solution.
  • Reinsurance contract wording: Zurich provides standardised wordings to ensure smooth Captive transactions and facilitate the Captive Fronting process.

Contact us

Angela Marks

Head of International Programs and Captive Management

Hana Lai

Captive Account Manager

Mark Hunt

Head of Deal and Broker Management


Further Information