The insurance marketplace commonly goes through its “hard” and “soft” cycles where premium fluctuations have little relation to individual loss experience. By pooling your resources with other companies as a Raffles partner, these swings can be minimized, making your costs more predictable. Also, by pooling your resources, you can lower costs and accrue investment income, both advantages your current insurance company retains.

No, you are not. If you were simply paying a premium into a fund in a bank and hoping your losses don’t exceed the fund, then yes, it would be very risky. The Raffles group captive program is conservatively structured, using a licensed and admitted insurance company rated A by A.M. Best, to act as the policy-issuing company. Raffles also retains equally strong reinsurance companies to insure catastrophic losses. In this manner, the captive is only assuming risk in a limited predictable loss layer.

The Company requires that every shareholder appoint a director. Each shareholder, regardless of premium size, has one vote. A simple majority governs. Raffles’ shareholder responsibilities include controlling losses, participating in board meetings, and educating other high-quality companies about the captive concept. Management strength lies in a strong committee structure and individual involvement of all directors during frequent meetings held both in the Cayman Islands and other locations outside the United States. Presently, the committees and their primary responsibilities are:

1. Underwriting – Advises the Board on desirable risks to be assumed and ensures that the assumed risks are adequately underwritten.
2. Risk Control – Sets loss control goals for its partners. Reviews loss control reports and works with partners to meet the required loss control and claims management goals of the Company.
3. Investment – Advises the Board on policies for the investment of the Company’s assets.
4. Finance – Reviews the Company’s interim and audited financial statements and monitors each partner’s compliance with their financial obligations to the Company.
5. Membership Development – Assists in educating prospective new partners about Raffles and the benefits of Raffles partnership.
6. Long Range Planning – Develops future plans for the Company based on strategic analysis.

Each shareholder is encouraged to attend all Raffles meetings and actively participate on the committee of their choice.