About Captives

What is a Captive?

A captive is a closely held insurance company established to insure the risks of its parent company and affiliated groups. You are the owner, you control it and you can profit from it.

Benefits of Forming a Captive

  • Greater Control

A captive insurance company gives you the power to coordinate and improve your risk management program, turning it into a viable profit center for your business.

  • Flexibility

Captive insurance offers flexibility in policy design and coverage, premium payment timing and claims handling.

  • Underwriting profit and investment income

Premiums paid into the captive can be invested to grow the financial strength of the company and increase surplus. If the captive has good claims experience it stands to generate a tremendous amount of underwriting profit for the captive owners.

  • Provide coverage not otherwise available

Captives can often provide coverage for unique or specific risk that would not otherwise be transferable in the traditional market.

  • Customized Coverage

Captive insurance is ideal for customizing coverage for your particular business, as well as non-traditional coverage.

  • Price & Underwriting Stability in Hard Markets

Surplus built up from prior years can help protect you against market volatility and make your insurances costs more predictable.

  • Create a Profit Center

In certain situations, captives can be used to insure the risks of third parties, such as customers, suppliers, or distributors, for additional profit.

  • Improve Risk Management Strategy

When you transfer your risk to a captive, you protect your operating budget and provide a stable financing mechanism for selected risks.