Benefits of a Captive Insurance Company

Captive insurance companies are established with the specific objective of insuring risks emanating from their parent group(s). There are many benefits of a captive insurance company, including reduced & managed risk, enhanced insurance coverage & financial.

What is Captive Insurance?

A captive insurance company is established to insure certain risks of the parent group or controlled unaffiliated entities. A captive provides the insured greater control over the uncertainties of commercial insurance availability and cost. The owners participate in underwriting and claims processing, have flexibility with policy provisions, and benefit from the underwriting and investment income.

Benefits of captive insurance include:

  • Control – allowing you to have an active role in insurance claims
  • Support of and integration with current insurance program
  • Increased coverage – including providing coverage for difficult risks or coverage that is not commercially available
  • Ability to establish high loss prevention and claims management standards
  • Access to the reinsurance market