17. Captive Utilization By Industry Source: Marsh Survey Group Manufacturing 10% Financial Institutions 20% Construction 6% Chemicals 3% Aviation and Aerospace 2% Other 7% Automotive 2% Health Care 11% Life Sciences 3% Mining, Metals and Minerals 3% Power & Utilities 8% Real Estate 3% Retails and Consumer Products 10% Technology & Telecom 6% Transportation 6%
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20. Hypothetical SIR/Deductible Structure Captive Contractor Insured Excess Insurance Policy $0 $1M SIR $9M Pays Premium Issues Policy Issues Policy Common Ownership Pays Premium
21. Contractor Insured Captive Reinsurer Common Ownership Policy(s) Issued May Purchase Coverage Hypothetical Direct Write Structure Pays Premium
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23. Insured Contractor “ A” Rated Ins. Co “ Front” Captive Reinsurer Issues Policy Acts as Reinsurer Common Ownership Hypothetical Fronted Structure Pays Premium Cedes Premium Less Front Fee May Purchase Coverage
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26. Domicile Chart Source: Marsh Survey Group Bermuda, 25% Cayman Islands, 12% Guernsey, 6% Ireland, 5% Isle of Man, 3% Luxembourg, 12% Singapore, 3% U.S. - Hawaii, 5% Sweden, 3% U.S. - Vermont, 15% Other (U.S), 6% Other, 5%
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33. Typical Structure Captive Insurance Company Issues Policies, Collects Premiums, Disburses Funds to TPA, States, and Feds Insured(s) Domicile Regulator Captive Manager Corporate Legal Counsel Auditor & Tax Bank & Investment TPA Claims Board of Directors Actuary