Many multinationals with global programmes will also have a captive insurer. A captive’s involvement in the setting and funding of retentions can be vital to a multinational programme. A captive is the one of the most cost-efficient ways to fill the gap between the group retention and the local retention levels. In addition, a captive can facilitate the ability to allocate premium to subsidiaries and operating units, and thereby improve loss control and risk management.
-       How important is a captive to a global insurance programme?
-       Is there a central role to be played, especially around retention levels and co-ordinating the different covers of subsidiaries around the world?
-       How can a captive be used in a global programme – as a primary insurer, reinsurer, or excess insurer?
-       Is the location of the captive relevant to a global programme in terms of regulatory and tax compliance?