Virtual Captive Solutions

An insurance agreement that simplifies the setup of a captive approach for risk financing by moving it to our balance sheet.

What is the difference between a virtual captive and a traditional captive? 

Virtual Captive

Traditional Captive

The insurance agreement is between you and Swiss Re Corporate Solutions

The insurance coverage is agreed upon by the insured and the captive

Covers a multi-year period; finances risks over time

Set up to exist for many years or indefinitely, finances risks over time

We provide coverage through the agreement and handle all solvency aspects through our already efficient and existing infrastructure

All regulatory aspects are handled by the captive management and contracted third parties

The agreement considers the risk appetite of the insurer, (i.e. the amount of risk transfer capacity provided in the insurance agreement)

The captive's capital is carrying the risk

Remaining funds are paid through: Low Claims Bonus (LCB) to the customer

Remaining funds are paid through: a dividend to the parent

The call for Additional Premium (AP) likely extends the insurance agreement period

Additional funds: A call for capital injection by parent with the intent to continue operating the captive

How is a virtual captive structured? 

A multi-year insurance agreement between you, the customer, and Swiss Re Corporate Solutions. The mechanics of a captive stay, but the agreement replaces the legal entity and eliminates the regulatory complexities of the traditional setup.

Is a virtual captive right for you?

  • Are you prepared to self-finance a larger part of your insurance coverage? A virtual captive ≠ a reduced premium on a single year basis. The reduced cost of risk plays over multiple years, essentially by way of Low Claims Bonus at the end of the agreement.
  • How much loss are you ready to finance? Assess self-financing risk appetite for a 1-, 3-, or 5-year period.
  • Have you evaluated the optimal retention on the relevant lines of business within current insurance market?
  • Have you consulted with Finance/ Accounting/Tax to ensure understanding and support?

If your answer is yes, contact us today!


innovativerisksolutions captive virtualcaptive