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Global Fronting Programmes & Captive Management

A global network, working for you

Alternative risk programmes from AIG often utilise the full range of our global capabilities. With one of the industry’s most extensive ranges of products and services, deep claims expertise, and excellent financial strength, we enable our clients to manage virtually any risk with confidence.  

Partnership approach

We have a strong history of partnering with our clients to fully understand their needs, and providing customised innovative risk transfer and risk financing solutions.  

Captive Management

We offer a complete range of services regarding the feasibility, structuring, formation, and management of captives with an in-depth understanding of each domicile’s regulatory requirements and local business practices. Rent-a-captives through AIG’s cell captive facilities provide simple, cost-effective risk retention solutions.  

Experience and expertise

We have the flexibility to insure virtually all lines of business, and the technical expertise to cover risks for which there is no conventional insurance market.  

 

Overview

There are times when companies face challenges that the traditional insurance or financial markets may not address effectively. Capacity may be limited. Significant risk retention may be required. The exposure may not be covered. Market conditions may be volatile. There may be a need for locally issued insurance policies. These are just a few examples of the challenges our global fronting programmes can help meet.  

AIG helps companies address non-traditional exposures by providing highly customised fronting programmes that apply insurance and/or capital market strategies. In addition, we provide captive management and advisory services regarding the feasibility, formation and management of captives, and offer cell captive facilities.

We partner with each client to understand its objectives, identify and analyse its risks and custom-design a programme to support its business strategy. Clients can choose from a wide range of innovative programmes that offer varying levels of risk retention and/or risk financing. Our programmes extend to all types of exposures and industries—providing solutions that deliver our expertise and global capabilities.

Who's it for?

  • Large commercial
  • Financial Institutions
  • Growing middle market companies
  • Multinational corporations

Programme Structures

An insurance or reinsurance company formed primarily to insure its owner(s) and affiliated companies.

Rent-A-Captive (RAC)  
A client "rents" a segregated cell within a sponsored captive facility. Clients without a captive can experience many of its benefits through participation in AIG’s own captive cell facilities in Vermont and Bermuda.

Captive Management and Consulting Services   
We provide a complete range of services regarding the feasibility, structuring, formation, and management of captives with an in-depth understanding of each domicile’s regulatory requirements and local business practices.

The client funds a notional experience balance in the amount of the policy limit. This funding can take place pre-loss, post-loss or some combination. The notional experience balance is increased by interest credited and annual deposit premiums paid, and reduced by losses paid. At policy end, any residual balance would be returned.

A programme in which the client retains ultimate financial risk within a defined layer by agreeing to indemnify the insurer for all losses and other amounts paid in respect of that layer.

 
 

Features & Benefits

  • Evaluating the possibility of retaining risk in order to benefit from positive loss experience
  • Experiencing an above average risk profile that is not properly reflected in the market prices for traditional insurance
  • Pursuing more efficient access to the reinsurance markets
  • Seeking to expand the use of an existing captive, rent-a-captive, or other protected cell structure to insure all or part of a risk
  • Requiring evidence of insurance for regulatory, disclosure, financing, marketing, trading, or counterparty needs
  • Facing a specific problem for which there is no clear or viable risk transfer solution
  • Seeking greater certainty and flexibility on coverage and premium through varying market cycles
  • Confronting significantly increased retentions or premiums
  • Challenged with high attachment points due to poor loss experience or market conditions
  • Experiencing restricted coverage due to adverse industry claim trends
  • Encountering a situation where current market conditions or shifting underwriting capacity are limiting availability of risk transfer
  • Experiencing inefficiencies with their multinational programmes/operations
  • Making improvements in loss control efforts that have not yet materialised in historic data
  • Looking to realise potential tax efficiencies.
  • Over 50 years of providing global fronting solutions leveraging AIG’s network of owned operations in over 90 countries, supported wherever required by local insurance partners
  • Over 20 years of delivering non-traditional solutions to our clients’ unique risks, using innovative structured (re)insurance solutions
  • A market leader providing non-traditional insurance and reinsurance solutions
  • Unique deal team culture bringing together underwriters, actuaries, lawyers, accountants, credit officers, claims professionals and operational specialists
  • Technical expertise to cover risks for which there is no conventional insurance market
  • Ability to analyse complex and unique risks
  • A history of partnering with clients to truly understand their business needs to provide innovative risk transfer and risk financing solutions
  • Superior servicing and claims handling, reporting, and management
  • In-depth knowledge and advice on programme structure, coverage, and regulations
  • Full access to AIG’s multinational policy issuance capabilities and expertise controlling multi-currency cash flows
  • Access to the resources of the AIG organisation, including significant risk-bearing and risk financing capacity
  • Ability to insure virtually all lines of business
  • Extensive product customisation ability
  • Broad flexibility in type of exposure, class of risk, and type of coverage (e.g., insurance, reinsurance, loans, or other financial products)
  • (Re)insurance to ring-fence liabilities (e.g., liability buyouts, portfolio transfers, captive redomiciliations)
  • Seamless policies that cover multiple risks within a single integrated programme
  • Regional fronting expertise and ability to meet local regulatory requirements
  • Full range of captive management and protected cell services