Captive Analysis
Managing your commercial property and casualty risk can come in various sizes and packages. While true guaranteed cost is a safe way to manage this risk, and alternative for your organization may be a Captive Insurance Program
A captive is an insurance company created and wholly owned by one or more non-insurance companies to insure the risks of its owner (or owners). Captives are essentially a form of self-insurance whereby the insurer is owned wholly by the insured . If large enough, you could be in your own single owner captive, but in today’s market, the group captive market may be an excellent choice for a casualty budget as low as $100,000. These group captives may be heterogeneous or homogeneous , as no size fits all.
The most common lines of business underwritten in a captive include:
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Lack of commercial market / capacity for certain lines of coverage/Rate increases continuous
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Desire to recapture underwriting profits and investment income
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Gain access to the reinsurance market
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Diversification into insurance services
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Potential tax benefits