Key Benefits Of Establishing A Captive Insurance Company

Sherman Taylor, Client Director details the key benefits of an effective captive insurance company and why it is an attractive option for businesses. 

A well-run captive can be an effective risk management tool, reducing group insurance costs for the captive owner. However, the commercial rationale for incorporating and establishing a captive extends beyond pro?t considerations, and the current insurance hard market cycle has created new industry buzz about captives.

Bene?ts for the captive owner include:

The ability to in?uence pricing is another bene?t of owning a captive. Large rate increases were evident in the latest round of insurance renewals, and it is unlikely that rate will come down in the near future as insurance and reinsurance companies are still dealing with the impact of major loss events spanning the past four years. It is highly anticipated that pandemic losses will exacerbate the situation and drive even more interest in captives.