A captive insurance company can be the primary risk management and planning tool for many businesses.

A captive insurance company, or captive, typically refers to an insurance company that provides insurance to, and is controlled by its owners. Its purpose is to provide insurance coverage for some or all of the captive owners’ risk.

The advantages of forming a captive insurer include:

  • Reduced cost
  • Greater access to insurance and reinsurance
  • More control over managing risks
  • More efficient use of financial resources

These alternative risk transfer mechanisms may act as a reinsurer and can be domiciled onshore or offshore. To provide for contractual insurance requirements, captives quite frequently acquire the assistance of a “fronting company” to provide licensing, and provide for contract or lending requirements. Typically:

  • The captive purchases specific and aggregate reinsurance
  • After deducting expenses, premium is ceded to the captive
  • A loss fund is established to pay claims

Our Captive Capabilities

With over a century of experience, we have the ability to develop innovative products for clients with non-traditional needs. Our in-house team develops custom insurance programs from the ground up by bringing strategically contracted providers together, including:

  • Insurance Carriers
  • Reinsurance and Intermediaries
  • Independent Claims Adjustors
  • Specialized Loss Control
  • Actuarial Services
  • Captive Managers

Determining if a Captive is the Right Solution

We work with our clients to determine if a captive is the right solution for them. This determination process includes:

  • Pre-feasibility Analysis
  • Feasibility Study
  • Actuarial Study
  • Pro Forma
  • Domicile Selection
  • Incorporation
  • Initialize Capitalization

Together we can take your captive project from design to implementation.