IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Log in (now much improved!) to save this article

Captive As An Insurance Formula For Risk Management: Advantages And Disadvantages

Listed author(s):
  • R. Holly

    (The Warsaw School of Economics, Collegium of Socio-Economics Policy, Warsaw, Poland)

  • E. Greszta
Registered author(s):

    This article introduces subject of an insurance captive entity, with focus on how it could be used as insurance formula for risk management. Captive might be the most appropriate insurance formula for risk management. However, the level of achieved success depends on many factors.Insurance captive sare understood as entities which are formed and owned by companies mostly for the purpose of insuring own risks (pure captive or single parent captive). More and more often captives are also formed by a group of companies (group captives) to insure their properties and liabilities towards 3rd parties. Captives are widely used by many companies nowadays. However, many of them, are used solely for a purpose of a risk cession and premium transfer, with an intention to use captives more as a profit center in a low taxation country rather than for the purpose of risk management (i.e. a more appropriate role for captive would be to support their owners in enterprise risk management – ERM). This article touches on why captives are not used to their full potential. It may be too challenging for many decision makers to embrace on captives as risk management formula and extend captives' roles to utilize all possible advantages resulting from owning a captive. Captive can deliver risk management in a more comprehensive way than most commercial insurers on the market. The article also presents advantages and disadvantages of owning an insurance captive.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL: http://spz.socionet.ru/~visnyk/files/191_17-22.pdf
    Download Restriction: no

    Article provided by Socionet & Киевский национальный университет имени Тараса Шевченко in its journal Вестник Киевского национального университета имени Тараса Шевченко. Экономика.

    Volume (Year): 2(191) (2017)
    Issue (Month): 191 ()
    Pages: 17-22

    as
    in new window

    Handle: RePEc:scn:pnoeeq:191a2
    Contact details of provider: Web page: http://socionet.ru/
    Email:

    Phone: +38 044 259-71-82
    Web page: http://www.econom.univ.kiev.ua
    Email:

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:scn:pnoeeq:191a2. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ганна Харламова)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.