Protecting the Captive

The most established markets are in North America, the London market (including Lloyd's of London), Bermuda and Europe. The first step in securing reinsurance for a captive is to select a reinsurance intermediary who can take care of all the functions of risk transfer in terms which include arranging reinsurance at the best terms, drafting the contracts, paying premium and collecting losses.

Reinsurance is available to cover losses that exceed the projected number over a given period of time or to cover large individual losses. The latter may arise from large individual risks or a number of losses arising from one event such as an earthquake or windstorm.