Agents

August 05, 2014
From Greg Taylor, AMS Group

An insurance agent is not necessarily required to perform any function in the set up of a captive insurance company. However, an agent will provide an option in co-ordinating an overall insurance strategy to contribute to your company's risk management philosophy. It is certainly a good idea to at least keep the agent "in the loop" so that they can develop their products and services to dovetail with your requirements.

For statutory covers such as Workers Comp and Auto a fronting carrier will be required. An independent Insurance Manager operating in an offshore domicile will not be able to place cover with a US domestic Front for such covers. A local insurance agent or fronting company will be required to do this.

An agent will provide an excellent source of insurance knowledge that will assist in the set up and ongoing development of a captive insurer. Additionally a good agent will also provide essential ongoing information in your evaluation of the opportunity cost of utilising a captive insurance solution compared with a conventional programme.