Why would an organization decide to establish a captive

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Reference no: EM133425501

Case: A very large multinational construction equipment firm is considering creating a captive insurance company. Aman, the company's director of risk assessment, has requested a meeting to discuss the positives and negatives of creating a captive.

Question: Discuss the items below with Aman:

a. Why would an organization decide to establish a captive?

b. What are five financial benefits to a captive and its owners?

c. Why might a company with its own captive still want to transfer a part of its exposures to a traditional commercial insurer?

d. If Aman decides not to proceed with captive insurance, discuss other alternative risk financing options to consider?

Reference no: EM133425501

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