Fronting and Captive Services

We offer a comprehensive, flexible platform for organizations with unique exposures and an appetite to share risk.

Why choose AIG for Fronting and Captive Services?

For over 50 years, AIG has provided a full range of market-leading fronting and captive services. We leverage a robust network of affiliate and partner operations to provide coverage in over 200 countries and jurisdictions. This means you get flexible, cost-efficient coverage that complies with the requirements of local regulators and other counterparties. With AIG, clients can predict, plan, and navigate a complex world, while working to achieve their risk, governance, contract certainty, and duty of care objectives.

Seasoned and experienced AIG industry personnel deploy the full breadth of our global capabilities to structure programs that effectively and efficiently manage risk with solutions designed to address:

  • Increased retentions or premiums due to loss experience or market conditions
  • Situations requiring evidence of insurance
  • The need for more efficient access to the reinsurance markets
  • Based on your needs, our products can be deployed together or as individual services
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The AIG Advantage

With an AIG-fronted program, you gain full access to the resources of our entire organization. This includes multinational policy issuance capabilities, significant risk-bearing and risk-financing capacity, and significant experience controlling multi-currency cash flows.

Flexible Captives Platform

Bespoke coverage and credit solutions you can rent or own, built through collaboration across AIG’s Underwriting, Credit, Legal, Claims and Actuarial teams

Global Footprint

Licensed management in 12 global domiciles leveraging local experience and compliant solutions in over 200 countries and jurisdictions

Deep In-House Expertise

Our in-house team of dedicated group captive professionals focused on member priorities and customized service

  • Develops innovative, compliant, highly customized fronting programs to manage challenging risks in collaboration with AIG’s Underwriting, Credit, Legal, Claims and Actuarial teams

  • Supports individual or multiple lines of business leveraging an established global footprint

  • Complements fronting arrangements with risk transfer solutions

  • Provides feasibility studies, operational reviews, accounting, regulatory filings and in-domicile administration for captives

  • Sponsors and manages protected cell captive facilities in Vermont and Bermuda allowing clients to “rent” instead of form their own captive

  • Operates as a licensed manager in multiple global domiciles delivering local expertise

  • Focuses an in-house team of dedicated group captive professionals on member priorities and customized service

  • Collaborates with intermediaries to help clients form new group captives or join an existing program

  • Develops bespoke coverage and credit solutions based on a collaborative effort across AIG’s Underwriting, Credit, Legal, Claims and Actuarial teams

Real-World Problem Solving

Benefit from our proven experience in working with customers and their brokers and agents to deliver successful outcomes.

Challenge

A big box retailer was looking to sell extended warranties on its products.

Solution

AIG provided a fronted program for the client, leveraging AIG’s global capabilities to manage insurance and transactional issues and reinsure the exposure to the client’s captive.

AIG Benefit

AIG supported a customized fronted program that creates a new source of revenue for the client, with the client sharing in the underwriting risk on the program through its captive reinsurer.

Challenge

A client faced significantly increased retention and premiums at renewal due to poor loss experience and market conditions.

Solution

Client retained the first $250,000 of the risk exposure. AIG issued the policy to the client, with the first $250,000 reinsured to the client’s protected cell within AIG’s sponsored cell captive facility.

AIG Benefit

The client efficiently managed its retention through a protected cell within AIG’s sponsored cell captive facility and provided needed proof of insurance for the full program.

Challenge

An insured with favorable loss history and a commitment to providing a safe workplace was facing a significant rate increase in the guaranteed cost market based on its industry.

Solution

The insured joined a group captive insured by AIG under a program whereby the captive reinsures the first layer of each loss.

AIG Benefit

Competitive pricing based on the loss experience of the individual insured and the potential to share in the underwriting results of the group captive.

AIG Fronting and Captive Solutions

Retain risk through your captive insurance or reinsurance company through an AIG fronting program. If you don’t have a captive of your own, your business can "rent" a segregated cell within one of AIG’s sponsored facilities domiciled in Vermont and Bermuda.

Retain ultimate financial risk by agreeing to indemnify AIG for all losses and other amounts paid in respect to a specified insurance layer.

Captive Management Solutions

Whether you’re looking to form a new captive, rent one, or optimize an existing captive program, our seasoned and experienced captive management staff will provide in-depth professional knowledge and guidance.

Global Portfolio

AIG offers a wide range of programs, from single parent and group captives, to segregated cell rent-a-captive structures. Clients without a captive can benefit through participation in AIG’s own captive cell facilities.

Complete Captive Services

We provide a full range of services regarding the feasibility, structuring, formation, and management of captives with an in-depth understanding of each domicile’s regulatory requirements and local business practices.

Global Reach

Our global capabilities allow us to set up and manage your captive in most of the world’s major domiciles and jurisdictions. Our worldwide professionals provide in-depth local knowledge and practical experience to optimize use of your captive.

AIG Multinational Insurance

If you conduct business across borders—even in just two countries—we can help you find the right customized and seamless multinational insurance solutions through AIG.

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Brokers: Meet Your AIG Team

View contact information for AIG’s national product and distribution teams.

Downloadable Materials

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aig-captive-solutions-highlight-sheet.pdf
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Captive Solutions Highlight Sheet

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aig-captive-management-services-brochure.pdf
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Captive Management Services Product Profile

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aig-fronting-and-captive-services.pdf
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Fronting and Captive Services Value Proposition Profuct Profile

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aig-grand-isle-sac-product-sheet.pdf
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Captive Cell Facility in Bermuda Product Profile

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aig-introduction-to-captives.pdf
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An Introduction to Captives

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nufic-of-vermont-brochure.pdf
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Captive Cell Facility in Vermont

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aig-captive-benefits-of-renting.pdf
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336 KB
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Captive - Benefits of Renting Product Profile

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captive-management-services-transfer-to-aig.pdf
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306 KB
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Captive Management Services Transfers to AIG Product Profile

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aig-multinational-captive-fronting-overview-ebrochure.pdf
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2 MB
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Multinational Captive Fronting Capabilities

What is a “Fronting” Arrangement with a “Captive” Insurer?

A captive insurer is an insurance company that’s owned and controlled by those it insures (“captive members”). This covers the owners’ risks while allowing captives to benefit from the profits of underwriting. Because they’re working outside of a traditionally regulated commercial insurance marketplace, captives are collectively agreeing to put their own capital at risk.

A traditional insurance company (the “fronting company”) enters into a contract with the captive insurer to issue the policies to the captive members, thereby allowing the captive insurer to comply with local laws. Instead of the fronting company taking on risk, they typically take a percentage of premiums in exchange for service.

The scenarios described herein are offered only as examples. Coverage depends on the actual facts of each case and the terms, conditions and exclusions of each individual policy. Anyone interested in the above product(s) should request a copy of the standard form of policy for a description of the scope and limitations of coverage.