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ISME tests the market for captive insurers



  • ISME taking practical steps to reduce insurance costs.
  • Captive insurers won’t fix the insurance crisis, but will increase transparency and reduce price volatility. 

In order to tackle the cost (and availability) of insurance, ISME is exploring the development of specialist group insurance schemes.

This may in time lead to formation of a captive insurer in one (or more) sectors.

Captive insureds put their own capital at risk, in funds managed by a broker employed by them. By managing their own risk, the owners of captive insurers can eventually benefit from lower insurance costs.

In order to gauge the viability of this proposal, ISME is launching a survey for interested parties.

Formation of captives will NOT resolve the issue of high insurance costs. Indeed, ISME members who are already participants in captive funds still pay more for their insurance in Ireland than they do abroad.

However, where there are sufficient numbers of well-managed members in transparent insurance pools, captives can reduce underwriting margins and costs, increase the bargaining power of the underwritten members, and reduce pricing volatility over time.

If there is sufficient interest in the formation of captive insurers, ISME will issue a formal Request for Proposals to the brokerage community in Q1 2020.

If you are interested in the formation of a captive insurer for your business sector, please take 3-4 minutes to complete the seven-question survey here.


  • ISME should be referred to as the Irish SME Association

For further information, please contact ISME offices T: 01 6622755 E: marketing@isme.ie