Combining life and general in in a captive can improve cash flow and reduce costs.
The number of companies combining non-life and life risks in a captive has nearly doubled in the past five years and is expected to double again within in the next five. There are risk management benefits in such a combination, as well as financial benefits: A captive can improve cash-flow management and investment returns while delivering premium cost saving.
With the forthcoming implementation of the Solvency ll Directive set for January 2016, captive operating in the EU, for example, are considering how to diversify risk exposure while decreasing thw amount of capital required to insure against the risk of insolvency. Adding employee benefits to captive can be an effective approach to meeting this diversification requirement, while driving greater overall operational efficiency and transparency.