What is Captive Insurance

A captive insurance company (or “captive”) can generally be described as a closely held insurance company that insures the risks and exposures of its owners and affiliates.

The captive insurance branch reviews and evaluates each prospective captive application on a case-by-case basis to ensure appropriate economic and social responsibility of each program structure and its related constituencies, as well as, compliance with applicable State laws and regulations. On an ongoing basis, the captive insurance branch utilizes interim and annual reports and filings, and on-site examinations to monitor compliance with the approved applications and business plans.

Advantages of a Captive

  • Tailored insurance coverage to meet your needs
  • Increased coverage and capacity
  • Underwriting flexibility and pricing stability
  • Reduced operating costs and improved cash flow
  • Greater control over claims
  • Investment income to fund losses
  • Direct access to wholesale reinsurance markets
  • Negotiating leverage with commercial insurance underwriters