Key Benefits Of Establishing A Captive Insurance Company

In part one of this three-part series shining a spotlight on the establishment of a captive insurance company, Managing Director - Bermuda, Alison Dyer details the key benefits of an effective captive 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 profit considerations.

Benefits for the captive owner include:

• Greater control over policy limits
• Greater control over deductibles and coverage
• Quicker claim handling
• Direct access to reinsurance markets
• Control over cashflow and timing of premium payments