Premium finance house Tifco is helping medium- to large-sized brokers enter the captive insurance market – either on behalf of their clients, or through the formation of their own captive insurance companies.
The company has teamed up with Sinser, a consultancy that specialises in captives, to form the Captive Development Alliance. It is a development of a similar joint venture that has operated in the US for 18 months.
Tifco acts as an introductory agent while Sinser, part of the Skandia Network of Companies, provides initial feasibility studies and captive formation, and management expertise and services.
In addition to its introductory role, Tifco offers interest-free finance on the feasibility study fee.
Tifco managing director Ian Jerrum said the captive route offered brokers clear financial benefits.
“The idea of establishing a captive vehicle is something many brokers may have not seriously considered yet.
“Brokers with individual cases or schemes (commercial or personal lines) generating premiums of £500,000 or more could well find that setting up a captive is an attractive proposition.”
