Captive Fronting

Contacts & Service

Allianz Global Benefits GmbH

Reinsburgstr. 19
70178 Stuttgart
Germany

Email

Direct contacts

  • Details

  Introduction

Captive Fronting is one of the three International Risk Management Programs that we currently offer. All of these programs aim to provide employee benefit solutions to a multinational client in several countries by utilizing the capabilities of our global network of insurers.

The other two International Risk Management Programs are:

  

  Captive Fronting at a glance

Allianz - globe_network

A captive insurance company is, in its purest form, a wholly owned legal entity formed to insure or reinsure the risks of its parent and / or associated group companies. Captives are usually formed to provide alternative risk management solutions to that of the conventional insurance market.

By implementing made-to-measure and cost effective employee benefit plans for your staff in your countries of operation, we ensure that our plans are locally compliant and above market standards.

Lines of Business

Lines of business to be included in a Captive Fronting arrangement (depending on local capabilities):

  • Life

  • Accident

  • Disability

  • Pension (risk elements)

  Advantages of captive fronting

  • More stable cost of insurance for the multinational company
  • Greater availability of coverage, especially in "hard" markets
  • Reduced operating costs: as they don’t have insurer's profit margin / overhead
  • Increased control over cash flows and investment income
  • Immediate rewards from controlling risk
  • Direct access to reinsurance markets