39 Woodside Park Road,  London,  N12 8RT,  U.K.
Tel: 020 8343 7072
    Fax: 020 8343 7073    E-mail: mhcr@russellandassociates.co.uk
www.russellandassociates.co.uk


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£375 + VAT  -  A one day course held in London
Course code: RF 

Risk Financing, Captives and Protected Cell Companies - Course Outline

Aims

Part 1.  This part of the course looks at the options available to a company for financing risk on a balance sheet from retaining the risk to transferring it to the insurance market and gives ways of establishing how much risk a company should retain on its balance sheet.

The benefits are explained of a company reducing its total cost of risk and not just its cost of insurance.

Part 2. This explains the information needed to carry out a feasibility study on the establishment of a Captive Insurance Company or Protected Cell Company.

Part 3 is designed to give participants a basic understanding as to what a Captive and Protected Cell are and covers their structures together with their advantages and disadvantages.  It also covers how they may fit into an insurance programme.

Audience

Part 1 will be of particular interest to those in the secretarial or treasury departments of companies and who look after insurance as a minor part of their job function.

Part 2 will interest anybody who is contemplating establishing a captive or protected Cell Company.

Part 3 will be of particular interest to those in banking, legal and accountancy who come across captives or Protected Cell companies in the course of dealing with their clients affairs.
 
Part 1

Session One

  • Risk evaluation
  • Risk assessment
  • Risk identification
  • Risk analysis

Session Two

  • Financing of risk

Session Three

  • Evaluating retention of risk

Session Four

  • Establishing the total costs of a risk

Session Five

  • Risk financing options
        Self-funding – the reasons for and against
        Is purchasing insurance the best option?

Session Six

  • Benefits of reducing the total cost of risk

 
Part
2

Session One

  • What is a Feasibility Study?
  • Overview of insurance programme

Session Two

Information gathering

  • Risks
  • Premiums
  • Claims

Session Three

  • Explanation of insurance categories

Session Four

  • Understanding claims statistics

Session Five

Financial criteria
  • Capital
  • Premiums
  • Claims
  • Investment Income

Session Six

  • Establishment / running costs
     

Part 3

Session One

  • What is a Captive?
  • Why form a Captive?
  • How a Captive operates
  • Benefits / disadvantages
  • Underwriting criteria
  • Objectives

Session Two

  • What is a RAC/PCC?
  • Structure
  • Benefits / disadvantages
  • Captive / PCC – differences
  • Characteristics
  • Operating structures
  • Why a PCC works

Session Three

  • Why does a captive need reinsurance?
  • Overview of types of reinsurance
  • Reinsurance market
  • Planning a reinsurance programme

Session Four

  • Simple structure
  • Structure for a large company
  • Global programme structure

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