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CI-4.1.3

The insurance business written by captive insurance firms lacks the diversity of risk of conventional firms. Because of this lack of diversity, the CBB seeks additional information from captive firms about their overall risk exposure and the level of reinsurance protection available. This additional information is included for captive insurers as part of the Insurance Firm Return as:

(a) Risk Gap — the degree to which the firm's potential liabilities (under the policy limits) exceed available assets and the resources available to meet this gap; and
(b) Reinsurance — the firm's providers, limits and claims.
Rulebook Reference BR-1.1.6
Amended: January 2007