What Is an Insurance Captive?

Insurance Captive

If you are looking at options for providing your clients with well-priced insurance, then you might want to utilize an insurance captive. This is a fantastic option for people looking to adequately manage risk, be in control of their plans and reduce their overall financial input.

What Is Captive Insurance?

A captive insurance company is completely controlled by the creators of the entity. For example, a large business would form a captive insurance company for its clients so that the business is in control of every aspect of the insurance process. This means that the parent organization that makes the captive insurance company will end up controlling premiums, writing policies and evaluating risks.

Why Should I Consider It?

You should consider this option if you want your company to be in better control of its insurance processes. Traditional insurance companies tend to be more volatile in both their pricing and the amount risk involved. This option has become so prominent now that around 40% of large companies in the United States have captive insurance.

Insurance is a key part of owning a business. If you want your clients to feel safe with the level of risk and be happier with policy pricing, then captive insurance may be the solution for you.