- Office 215, Block B, The Junction Business Hub, Calebasses, Mauritius
- +230 245 9773
Captive Insurance – Risk Migration
Risk Management
Efficient risk management is one of the key elements in running a business. The risks that companies face normally fall into three categories, each of which requires a different risk-management approach:
- Preventable risks, arising from within an organisation, are monitored and controlled through rules, values, and standard compliance tools.
- Strategy risks are typically where a company voluntarily accepts some risks to generate superior returns from its strategy.
- External risks arise from events outside the company and are beyond its influence or control. Sources of these risks include natural and political disasters or major macroeconomic shifts.
Conjugating Risk Management and Captive insurance
One of the most common methods of risk financing is the use of Captives that offer more creative structures that help to address risk exposures in an appropriate and innovative way. Captive structures play an integral role in supporting the execution of the parent organisation’s strategic plan by providing enhanced flexibility of capital and ensuring that the Captive board members are effectively engaged and focused on risk issues impacting the parent’s organisation.
Captives are increasingly addressing emerging and non- traditional enterprise risks, such as loss of key employees, cyber threats, business interruption, reputational risk, and environmental risk amongst others and this is taking place in both established and newly formed Captives, especially in recent years. Leveraging an effective Risk Management approach both on an organisation-wide basis as well as within its affiliated entities, enables them to consider alternative solutions and promotes open discussion of contingency planning through Captives.
Utilising a Captive entity for risk management enables businesses to gain a deeper understanding of financial risks, leading to improved profitability, cash flow, and overall financial health. Furthermore, it inspires strong motivation in a company’s shareholders to sustain or increase their investments in the company knowing that overall risks, both existing or emerging, are being monitored and assessed rigorously.
Fortree’s captive insurance offering
Fortree Management Services Limited has established itself as a boutique service provider in Captive Insurance, leveraging its extensive network and market connections both regionally and globally. We outstand ourselves as a Management Company through strategic value add services in the light of underwriting, reserving, pricing as well as brokering services making us a one stop shop. Furthermore, for an efficient setting up/incorporation as well as ongoing running of the affairs of the Captive entity, the valuable and essential experience of a Management Company is key to ensure adherence from a statutory, regulatory, compliance, accounting including IFRS 17 reporting, corporate governance, secretarial, tax as well administration perspective. Our mission is to offer an ideal platform and expertise for existing and potential captive owners.
Other key players offering
We need to also acknowledge the vital input and support from other key stakeholders in the equation. Mauritius has a panoply of professionals including, auditors, actuaries, banks amongst others. A Captive entity needs to have an
appointed Auditor, and the Island already has the players with relevant insurance experience to ensure a smooth audit is being undertaken. Over and above, an actuary, who needs to be an independent legal person, is required to be appointed, being an important aspect of sound governance for the Captive entity. Finally, financial institutions are the backbone for an entity’s transactional operations as well as wealth/investment management in the form of sophisticated/innovative products to accompany the Captive to yield additional returns and the Banks in Mauritius be it domestic, regional or international are well equipped to offer such products and services and act more as a strategic collaborator.
Drive towards modernisation
Adopting a forward-thinking approach to risk management in combination with a Captive in Mauritius can create synergies within a group structure. This approach can level up the overall operations of a group business including innovative opportunities that:
- Improve loss prevention
- Identify risk scenarios to model them through the Risk Management
- Offer flexibility and fund for coverages that the commercial market excludes or restricts
Now, more than ever, having a Captive structure allows organisations to think beyond the traditional risk management approach and as such better prepare an organisation for the next unexpected event.
The Company
Useful Links
Reach Us
- Office 215, Block B, The Junction Business Hub, Calebasses, Mauritius
- (230) 245-9773