The Study on Property Loss Control of Captive Insurance Company

• Main Authors: Ju-Hon Kao, 高如弘
• Other Authors: Mr. Cheng-Ming Liu
• Format: Others
• Language: zh-TW
• Published: 2011
• Online Access: http://ndltd.ncl.edu.tw/handle/81523698623073971652

碩士 === 銘傳大學 === 風險管理與保險學系碩士在職專班 === 99 === It is observed that for the past few decades, natural catastrophes and man-made disasters have brought about huge impacts on enterprises. Being faced with the various unpredictable risks with high degree of uncertainties, the enterprises have sought available methods to manage their risks. Among these solutions, purchasing a suitable insurance product to cover their business risks is commonly considered. Nevertheless, the cost of obtaining the protection of insurance plays a significant role when an insurance product is evaluated by the management of the enterprise. How does an insurance company determine the cost that the enterprise has to pay for an insured coverage? As the insurance company transfers the above-mentioned risks partly or wholly via the reinsurance market, the extent of capacity offered by the reinsurers to support the insurer makes a difference in the insurance cost that the enterprise has to bear. If the insurer lacks for the capacity from the reinsurance market, then the coverage offered to the enterprise as well as the payable insurance premium will fail to meet the needs of enterprises. In view of the above, to set up a captive seems to be a good alternative for the enterprise rather than their trying hard to find a qualified insurance coverage with reasonable insurance premium. Furthermore, the enterprise can benefit from setting up its own Captive considering that the works of loss prevention, which are created with the goal to reduce the severity and frequency of losses, will be incorporated into the day-to-day operations, not just be executed after the incident occurs. This is the main core of Risk Management, which is the key factor to the sound continuity of the enterprise. This article intends to bring discussions about the measures of loss control adopted by enterprises from the perspective of practical experiences in the prevention and control of risks. It is believed this article will contribute to a comprehensive understanding of the tools for loss control for enterprises.