Captive Insurance

Why form a captive?

• Availability Problems -
  The lack of consistently available insurance coverages is a realistic concern for insureds in today's marketplace. Professional liability coverages are a good example of a coverage with little, if any, availability. As insurers pull back during the usual insurance cycle, certain coverages are less accessible, or are only offered with unreasonable coverage terms and/or prices;
• Pricing Inequity -
  Some insureds confront insurance rates that are higher than what is appropriate based on their own incurred and projected losses;
• Lack of Flexibility -
  An insured's need for coverage doesn't always meet with conventional insurance coverages. Terms and conditions of conventional insurance coverages and the lack of flexibility in conventional insurance policy language sometimes leads to alternative risk insurance solutions. Structuring an alternative risk solution in response to your risk financing needs often results from the captive insurance program's ability to provide coverages for a specific exposure that may be otherwise uninsurable; and
• Control -
  The ability to focus management attention on loss control and risk-financing needs; implement a consolidated company-wide risk management and risk-financing strategy; build a dedicated asset base to fund risk financing needs; gain direct access to the reinsurance market; improve cash flow; benefit from improved underwriting and investment income; and level the playing field with competitors who use their alternative risk solutions to gain a competitive advantage.

Roundstone Insurance LTD. coordinates the formation, underwriting, actuarial, tax and legal services necessary for the development of an alternative risk or captive insurance program. Roundstone works with accountants, actuaries, brokers, lawyers, program managers, consultants, risk managers, insurance companies and reinsurers to create the most effective alternative market insurance program for your risk financing needs. Strategy, design, implementation and management expertise are your advantage when you work with Roundstone.

Roundstone's reinsurance and Rent-A-Captive affiliate, Roundstone Insurance, Ltd. (www.RoundstoneInsurance.bm) is available to offer you and your insurance program all of the benefits of an owned insurance company, including: greater control over your service costs; tailored coverages, terms and conditions; enhanced cash flow and reduced overall insurance expense without actually creating a self managed insurance company. With Roundstone Insurance LTD. as your Rent-A-Captive facility you also avoid the drawbacks of inflated organizational costs, excessive capitalization requirements, burdensome regulatory and financial reporting demands, offshore travel and unnecessary regulatory fees.

Roundstone Insurance LTD. is incorporated as a segregated account company so that client assets and liabilities are legally segregated thereby providing the maximum in asset protection and security. Segregation is accomplished by law through Roundstone's organizational documents. Your segregated account has a statutory division from every other segregated account making it impossible for one account to attach to the assets and liabilities of another account.

Let Roundstone Insurance LTD. help you analyze your risk financing needs and select the right captive insurance approach. To learn more about captive insurance programs and rent-a-captives give Roundstone a call.