Assurex Global Forms Captive

Columbus, Ohio-based brokerage Assurex Global announced the formation of Assurex Global Reinsurance Ltd., a captive insurance company to provide risk management solutions to corporate customers around the world.

The new entity was announced by Assurex Global Board Chairman Greg Collins, president of Seattle-based Parker, Smith & Feek, an Assurex Global Partner. A captive is an insurer formed by a corporation to insure the risks of the owner and/or closely related third parties. Captives provide alternative funding mechanisms to commercial insurance markets.

Assurex Global Re is one of a newer breed of entities that allows for multiple captives, which are segregated cells for insuring heterogeneous or industry-specific groups, according to Collins.

“Assurex Global Re will be client focused — providing group solutions for the corporate clients of our independent broker Partners,” he said in a statement. “The initial cell will be focused on heterogeneous corporate clients, who are dedicated to proactive management of their insurance needs. Future cells are expected to address more difficult commercial classes, such as medical malpractice, assisted living, California workers compensation, small commercial accounts, and construction.”

Assurex Global Re will be based in Bermuda and managed by HSBC Insurance Solutions Ltd., an Assurex Global Partner. Discover Re Managers, the alternative risk subsidiary of the St. Paul Insurance Group, will underwrite the first program to be reinsured by the company. Innovative Risk Management, based in Irving, Texas, will provide program management services, while claims will be managed by Columbus-based Frank Gates Service Co.

Assurex Global generated annual premiums in excess of $19 billion.