Captives for rent: protected cell use rising fast. (Protected Cell Captives).

National Underwriter Property & Casualty-Risk & Benefits Management, May, 2003 by Kramer, Chris

By now we all have heard stories about insurance buyers whose premiums have risen so dramatically that despite a minimum of losses and a good balance sheet, they can no longer afford to invest in a traditional insurance program--even though they have a self insured retention or deductible plan.

As the insurance markets continue to struggle with capacity and affordability issues for policyholders, many are turning to the alternative market for their solution. For many, the quest results in establishing a captive for their risks. For those who want to "try on" the concept of a captive but lack the capital or operational expertise, a rent-a-captive is the answer. But are all rent-a-captives the same? Is a protected cell captive the same as a rent-a-captive? In...

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