Green Island Reinsurance Treaty (Pooling Programmes)
Green Island Reinsurance Treaty, established by Marsh in 1997 is a reinsurance pooling facility that enables participating captives to "share" their primary casualty or workers' compensation loss experience by transferring a portion of their risk in exchange for assuming the risks of other participants.
Potential advantages of participating in Green Island include:
- Reduction in the variability of loss costs.
- Ability to diversify a captive's (or cell's) underwriting portfolio.
- Low frictional costs with no additional capital or surplus required if risk is currently written by the captive.
- Source of unrelated premium for a captive (or cell) to help support insurance company tax treatment.