Captives
Another Option
An alternative type of risk transfer is the formation of a captive.
DIFFERENT FORMS FOR DIFFERENT NEEDS
- Single Parent: owned by an individual company and the company owns the benefits of their own experience.
- Group: owned by multiple companies with like exposures (homogeneous group) or multiple companies from different industries that want to share risk.
- Rent A Captive: owned by a group or organization. This form allows another company to participate but with very limited ownership or captive profit sharing.
- Agency: owned by an insurance agency or organization to pool resources of a specialty group or niche. The insurance agency retains all the benefits of captive ownership.
- Risk Retention Group or Risk Purchasing Group: pool resources to negotiate exclusive rates and coverage of an insurance program.
Exploring Options for your Business
Participating in these arrangements is a long-term commitment with a willingness to invest in loss control and safety programs to reduce loss exposures.
Captives can provide potential insurance cost savings with benefit rewards if losses are controlled or eliminated.
Insurance companies may offer fronting services for captive groups with the members controlling all the back-end service work and payment of claims.
Our team has knowledge and experience in assisting businesses on their journey to becoming a captive. Contact your Client Advisor today to learn more about the process.