What is a Captive? What are its benefits?
In its purest form, a captive is an insurance company formed by a business owner, or a group of business owners, to insure their own risks. Through common ownership, captives can provide customized insurance, risk transfer, and risk management solutions that are specific to the needs of its insured parent company.
Captives can also save businesses money on insurance costs. Rather than pay an annual premium to a third party commercial carrier, premiums are transferred to a captive and are set aside in a loss fund for the use of paying claims. Depending on the amount of claims, a captive could allow business owners that have solid risk management practices to retain underwriting profits and earn investment income that would have otherwise gone to a third party commercial carrier.
Furthermore, captives can provide a business owner with the ability to form a new profit center by creating a new revenue stream through the offering of insurance products to customers or suppliers.
INSKING Captive Services can help you determine if a captive solution is right for you – and can tailor that captive solution to meet your specific needs.
INSKING’s Captive Capabilities
INSKING offers a comprehensive solution to guide you from determining whether a captive is right for you to helping create and manage your captive – all while guiding you through the paperwork, regulatory ramifications, and administrative steps in between:
• Feasibility / actuarial studies and strategic reviews
• General management services
• Financial reporting
• Regulatory compliance
• Underwriting and technical insurance consulting
• Loss analysis
• Fronting, reinsurance, and collateral negotiation
• Risk management services
Ready to rethink your risk management solutions? Contact a INSKING broker today.