Capital providers offer their financial investment with strings – lower the risk, raise deductibles, reduce coverages, raise prices. Capital can flow into a company easily and it can flow out just as easily.
Starting a Captive is all about the ability of the client to accept that timing risk and their ability to fund the timing element more effectively than the Insurance market is offering. Having 100% of your exposures in a Captive is rarely a good idea but so often we see that a blended approach is the most effective solution.
