Omni Risk President and Chairman John Rooke is considered one of the foremost authorities on reinsurance. As a result, Omni Risk has extreme knowledge and relationships in the reinsurance market.
In certain situations, Omni Risk Management, Inc. can use our expertise in reinsurance markets for the formation, organization and management of captive insurance programs to assist our clients to reign in insurance costs. If a client's insurance expenditures are more than $1,000,000 a year, has a better than industry average experience with regard to losses and is paying high premiums, Omni Risk, our attorneys and accountants would determine the feasibility of the formation of a captive for that client.
Historically, a client can save on its insurance costs through the formation of a captive, since this removes the profit and the high administrative costs passed on to the insured by the insurer. Very large savings can be achieved if our client is in an industry with historically high rates and the client’s loss experience is better than the industry average. When the use of a captive is recommended, it can be an important option for the right client.
Within Omni Risk there are many years experience of structuring reinsurance programs, which not only are utilized by direct insurers, but also by Captive Insurance Companies. The principles of such structuring can also be used in the placement of direct risks and programs which would have some of the advantages , particularly in premium cost savings, as those enjoyed by Captives.
Within certain guidelines, we can assist in the formation of Captives which have the following advantages:
· A level of control in the premium rating
· Direct communication with reinsurers
· Enabling of participants to have a better handle on future cost planning
· Reductions in servicing costs
· Benefits from the profitability of insurances
· Instant advice on development for coverage’s due to technical advancements in the trade
and legislative direction both domestically and internationally.