<p><strong>Speaker 0</strong>: <span>well, captive insurance can come in a number of ways, but typically you would start with a relatively small, uh, cell cell company, for instance, which is a, uh, perhaps a cheaper and easier way to start out. You can use it to create a bastard sit behind the fronting company.</span></p> <p><strong>Speaker 0</strong>: <span>Uh, you could if you're large enough, look at, uh, a full insure a full, uh, company sitting as a reinsurer behind behind a fronting company or even there may be some ways where it may even be appropriate to have a standalone insurance company, uh, taking risk if you're perhaps looking at risks which may not just be in the UK market.</span></p> <p><strong>Speaker 0</strong>: <span>I think a lot of, uh, MGAS are concerned about capacity. Uh, they're seeing capacity less and less capacity providers who want to be involved in the business. Uh, they're seeing that some capacity providers, um uh, are have got lots of alternative ways of using their own capital. And always the concern for an MG A is, um, keeping keeping the capacity available to them.</span></p> <p><strong>Speaker 0</strong>: <span>And there's always a fear, I think for and MG A that the capacity provider could decide for reasons completely unconnected with their own business that maybe it's not a class that they want to keep supporting.</span></p> <p><strong>Speaker 0</strong>: <span>I. I think the, uh if you can start to build in, uh, use of your own capacity, I think you start to give a longevity to the relationship you have with a fronting company. So I think it sort of deepens those ties. I think for the fronting company, there are definite pluses as well, because clearly your MG a is actually taking part. It's got skin in the game, and that has to be good.</span></p> <p><strong>Speaker 0</strong>: <span>Well, the risks are you're participating in your, uh, your original risks. So if you have do have issues with, uh, you know, loss histories in a particular year, then you'll share that along with the fronting company. But those can always be mitigated</span></p> <p><strong>Speaker 0</strong>: <span>if you have a class of business where there could be, um, maybe few but large losses, then those your involvement in those would be capped in some way. So there's plenty of ways of structuring a reinsurance programme, which will mean that you have a manageable exposure.</span></p> <p><strong>Speaker 0</strong>: <span>Well, you won't be surprised to know that I'll say duty in Guernsey, but clearly other financial centres are available. Uh, Bermuda is an obvious one, and there's different ones around the world, you know, some which may have a driver for some people, but in Guernsey you would typically speak to an insurance manager, and there is a number of those who are licenced on the island.</span></p> <p><strong>Speaker 0</strong>: <span>The insurance manager can then basically take you through the whole process of feasibility. Try to work out how it works, Will it? Will it work the size that it needs to be, and crucially, the capital requirements that it will? It will lead you to Would it be a sell? Is that appropriate to be a sell or or would it be a standalone company? But its insurance manager will guide you through those things, and that's obviously what we can do for a client.</span></p>