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Conducting the Feasibility Study

For the more sophisticated risk bearing captives, a feasibility study is required. The study requires an analysis of the company’s risk exposure and examines the parent company from a perspective of its operations, its history, spread of risk, risk retention tolerance planned future direction and past loss ratios – preferably over a long term period, say 15 years or more.

AMS work (on a fee basis) with your insurance broker, reinsurance broker, fronting insurers in different territories, actuary, tax advisor and other service providers in designing the program of coverages to be written in the captive. Since every company’s profile is different, so too is the exercise involved.

Integral to the feasibility study is an examination of the risks faced by an enterprise, whether currently insured or not. We explore new risks that a business may write in its captive with admissible pre-tax expense deductions at the parental level. We design and implement tailor-made programs embracing property and casualty and other unusual risks in manuscript policy wordings.

These are specialist studies that highlight risk transfer and financing opportunities unique to certain industry or trade groups. Our insurance team is drawn from retail broking and underwriting backgrounds and is experienced in designing specialty programs for a wide range of industries.

Feasibility study fees vary according to the complexity of each inquiry. They are a once-only expense and are separate and apart from our regular insurance management fees. Because of the unique nature of each study we cannot indicate firm fee levels, but they generally fall between $8,000 and $30,000 plus disbursements for foreign travel etc. where required.


AMS Insurance Management Services Limited
Sea Meadow House, Road Town, Tortola, British Virgin Islands
Tel: (284) 494-4078 - Fax: (284) 494-2519
E-mail our Insurance Deparment

 

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