CAPTIVE INSURANCE
Enhance Your Risk Management with Captive Insurance
Businesses seeking greater control over their insurance programs and improved cost efficiency often turn to Captive Insurance. Captive Insurance involves creating a licensed insurance company owned by the businesses it insures, allowing organizations to manage their risks proactively and strategically.
We partner with leading captive management firms to help you explore, establish, and manage your captive insurance company effectively.
Captive Insurance. Simplified.
What is Captive Insurance?
Captive Insurance is a specialized insurance company created and controlled by one or more parent businesses to provide tailored coverage. It enables businesses to:
- Customize insurance solutions to specific risk profiles
- Retain underwriting profits and investment income
- Manage claims directly, improving efficiency and outcomes
- Achieve potential tax benefits and enhanced cash flow
Who Can Benefit from Captive Insurance?
Businesses with unique risks, significant insurance premiums, or difficulty obtaining traditional coverage may particularly benefit from captive insurance, including:
- Manufacturing firms
- Healthcare organizations
- Construction and real estate companies
- Transportation and logistics firms
- Professional services businesses
- Large franchise operations
Types of Captive Insurance
Captive insurance can take several forms, each tailored to different business needs:
- Single-Parent Captive: Owned by one company, providing tailored coverage to its specific risks.
- Group Captive: Jointly owned by multiple companies, typically within similar industries, to pool risks and share costs.
- Association Captive: Owned by a trade or industry association, covering its members’ risks.
- Rent-A-Captive: Allows businesses to use an existing captive infrastructure without establishing their own captive.
- Protected Cell Captive (PCC): Offers separate cells within a captive for individual members, ensuring isolation of risks and assets.
Factors to Consider with Captive Insurance
Navigating captive insurance can be complex, but we can help simplify the process. Establishing a captive insurance company requires careful consideration of several factors:
- Risk Profile: Identify your organization’s specific risks suitable for captive insurance.
- Financial Feasibility: Assess premium volume, claims history, and potential cost savings.
- Regulatory Environment: Select a jurisdiction that meets your legal, regulatory, and operational needs.
- Management and Administration: Determine the resources required to manage claims, underwriting, regulatory compliance, and financial reporting.
