Overview

Artisans Insurance Ltd. is a member owned homogeneous group captive domiciled in the Cayman Islands. Each Shareholder has equal ownership. Each Shareholder represents a single and equal vote on Artisans Board of Directors regardless of premium size.

Artisans operates on a four-year accounting cycle, meaning it generally strives to close its accounting for a single underwriting year three years after an individual underwriting year has ended.

Artisans' premium is developed through the use of an actuarially determined loss forecast. The actuary will use five years of loss history for all lines of coverage, generally, this includes Workers’ Compensation, Auto Liability, and Auto Physical Damage. The loss funding, derived from the actuarial forecast, is broken-out into two categories by the actuary known as the “A & B” Funds. The “A” Fund pays for the first $75,000 of any loss and the “B” Fund contributes to the remainder of the company’s loss layer up to $250,000 total per occurrence. In addition, the concept of risk sharing and risk shifting is important to Artisans for deductibility purposes. Artisans is designed by its members to have an acceptable level of risk sharing.

Purchasing both specific and aggregate excess insurance protects Artisans and its members. Specific excess reinsurance protects the captive against a single catastrophic loss. The aggregate excess protects the captive against a high number of frequency losses that fall within Artisans’ retained limit. The concept is based upon controlling the predictable losses and re-insuring away the un-predictable losses.