SRS Altitude LinkedIn Series Episode 6: When to Consider Structured Reinsurance

Structured reinsurance is like a tailored safety net for captive insurance companies, designed to protect their limited capital from an unexpected surge in claims count.

When a captive insurer takes on more risk or adds new types of coverage for its parent company, structured reinsurance steps in to manage the potential financial strain.

If a captive's capital is at risk—whether from unexpected losses piling up or its solvency dipping to a critical level—owners face two choices: inject more capital or buy reinsurance. Reinsurance is often the smarter move. It’s quick, efficient, and doesn’t tie up extra capital within the captive, keeping your resources flexible and your risks in check.