Quest is a leading independent global captive
manager with the ability to service clients in the
US, Bermuda, Cayman Islands and Europe.
We offer a full suite of services: startup
consulting and feasibility, program design and
domicile selection, ongoing management and
regulatory compliance, and consulting services
for exit strategies including reinsurance, loss
portfolio transfer, novation and full acquisition.
We have expertise in cell arrangements with
three facilities, one in the District of Columbia
and two in Bermuda.
For further information or to discuss any of our
services, please contact:
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Knowledge, Experience and Innovation
center to a profit center.
“They’ve built up a surplus in
a captive over the years, because
very often companies will price
their premiums at market rate,” said
Dave Provost, Vermont’s Deputy
Commissioner of Captive Insurance.
“They’re in a captive because
they think they’re not getting a
good deal in the market and so they
do build up profits over the years.”
Once a captive has built up that
surplus, Provost said, the owner has a
Increasingly, the answer is to
expand the captive’s offerings to
include insurance products for
clients, members, suppliers, etc.,
which are outside the company but
related to it.
“States like Vermont have
the flexibility to say, ‘Look if it’s
controlled and related to your
business — and the keywords are
controlled and related — we’re
comfortable that the risk that you’re
putting in your captive is in a good
business and solid business.’ They
are supportive of allowing companies
do it,” said Young.
Such expansions often take the
form of extended warranties and
“When it comes to vendors and
suppliers, there is an opportunity for
an owner of a single-parent captive
to offer some insurance products
to unrelated parties that they work
closely with,” said Provost.
“We call it controlled unaffiliated
business. You may not have legal
ownership control, but you’ve got
some effective control. If you’re
either their largest customer or their
largest supplier, you can exert some
influence on them, and if you can do
that, then you might be able to share
risk with them in your captive.”
Other innovations arise in
response to emerging risks from
technology or sociopolitical
“Captives have been insuring
terrorism risk since 9/11,” said Bill
Mourelatos, managing director,
Captive & Insurance Management,
Aon Global Risk Consulting.
“One advantage of putting some
of the risk into a captive is that
they can participate in the federal
backstop or the TRIA Program.
But I think another innovation, at
least with terrorism, is that they’re
including nuclear, biological,
chemical and radioactive cover,
which typically is excluded from
commercial coverage,” he said.
“Since the federal government
started backstopping terrorism
insurance, captives have been utilized
by property owners and other
businesses, both large and small, that