SHE Level 2
SCQF Credit Points 20.00
ECTS Credit Points 10.00
Module Code M2N311636
Module Leader Muhammad Nawaz
School Glasgow School for Business and Society
Subject Finance and Accounting
  • A (September start)
  • B (January start)

Pre-Requisite Knowledge

1st degree/ relevant experience/ relevant profession qualification/ studies in Insurance.

Summary of Content

This module examines the concept of Captive Insurance Companies and comprehensively analyses the feasibility, establishment and operations of captives. The domicile selection and choice of type of company will also be considered.


1. History and overview. 2. Reasons for forming a captive. 3. The feasibility study. 4. The decision to set up. 5. Management duties. 6. Operating procedures. 7. Finances. 8. Insurance classes & uninsurable risks. 9. Re-insurance. 10. Domiciles. 11. Types of captive. 12. Tax considerations.

Learning Outcomes

At t he end of the module, students will be able to:Explain the origins of Captive Insurance.Discuss the reason why they are formed.Explain how a feasibility study is carried out and how this contributes to the decision making process.Discuss the functions of the Board, management etc.Explain the financial aspects of a captive.Analyse the different types of re-insurance and their application.Consider the reasons for different locations being chosen and the tax implications for them and the different types of captives.

Teaching / Learning Strategy

This module is delivered on a distance learning basis. The student is provided with a workbook, designed to complement the core textbook, to be completed in his/her own time and at a place/time agreeable to them. The workbook has been designed in a directed learning manner and the student is guided through it step by step. The student is further directed to additional reading in order that they build up a wide range of knowledge about the individual topics. The learning therefore, is largely independent and reflective, however a system of e-mail support has been established for use by student s where necessary. Student Performance Feedback Aims Students will be provided with feedback on all forms of assessed work within three weeks of submission. They will also receive feedback on all group or individual contributions to the module. The feedback that they receive is designed to: A: Facilitate the development of self-assessment B: Encourage dialogue C: Clarify good performance D: Provide opportunities to close the gap between current and desired performance E: Deliver high quality information about your learning F: Encourage positive motivational beliefs and self-esteem G: Provide information to teachers that can be used to help shape the teaching Strategies In order to achieve these aims, the following strategies will be adopted by this module: A: Facilitating the development of self-assessment Students will be provided with a template for the evaluation of their coursework. They will be encouraged to identify the strengths and weaknesses of their own work in relation to the criteria prior to submission. B: Encouraging dialogue Students will also be encouraged to e-mail module tutors to review their personal performance. C: Clarifying good performance Increasing discussion and reflection about criteria and standards by e-mail. D: Providing opportunities to close the gap between current and desired performance Feedback will identify generic and individual action points for improving performance. E: Delivering high quality information about your learning Feedback will be provided as soon as possible after submission and within 3 working weeks at the latest F: Encouraging positive motivational beliefs and self-esteem All feedback will be constructive and clear. It will identify strengths in performance. G: Providing information to teachers that can be used to help shape the teaching Students will be asked to identify the areas that caused them most difficulties when submitting their work.

Indicative Reading

Essential Reading Captives & Captive Management for Practitioners and Owners, 2002, by J R Parkinson. Additional Reading Bannister, Alternative Risk Financing 2nd Edition 2002, Bannister Developments Gordon, Risk Financing 1992, Witherby, London. Davis, Hood & Stein, Insurance Non Marine: An Introduction, Witherby, London 1997. Reinsurance CII, 1999. Global Re-insurance Journal Bawcutt P (1997), Captives Insurance Companies, 4th Ed., Witherby, London. Head L et al, Essentials of Risk Financing, 3rd Edition. Captives Insurance Review (Monthly) New Developments in Captive Insurance & RIRG, 2001. Captive Papers 1/2001, RIRG. Risk Management & Insurance, Cawillary et al, 1995, McGrawhill, Singapore. How to Manage Risk, 2nd Edition, Bannister Publishing. Edwards, Report on Moneylaundering Captive Management Booth, 2001, RIRG. Accounting for Non Accounting Students, Dyson, 5th Edition, FS Condon, 2001. Accounting & Finance for Managers in Insurance, CII Business Environment, CII. Web Site Addresses

Transferrable Skills

In addition to the attainment of the learning outcomes students will develop personal transferable skills in self-management, report writing, case study analysis, essay writing, problem solving and critical thinking.

Module Structure

Activity Total Hours
Independent Learning (FDL) 182.00
Assessment (FDL) 18.00

Assessment Methods

Component Duration Weighting Threshold Description
Coursework 0.00 30.00 n/a Report of 1500-2000 words
Exam (School) 2.00 70.00 n/a Unseen exam