Captive insurance companies are insurance companies formed by a business owner or a group of business owners to insure the risks of related or affiliated businesses, rather than relying on an outside commercial insurance company to provide coverage. Forming a captive insurance company is perfect for businesses looking for solutions outside of the commercial insurance marketplace — or that can complement their existing commercial insurance — to achieve their risk financing objectives.
Through a complete risk management analysis, we are able to determine what risks and coverages are better suited to be insured through the captive versus a traditional carrier. We look at your traditional insurance and the captive as one cohesive strategy. Savings can be accomplished by adjusting coverages, increasing deductibles, and recapturing those exposures through your new captive.
Our captives create a risk management strategy that gives you more control over your business. The captive can increase cash flow, reduce insurance costs, capture underwriting profits, and provide many additional benefits.
The great thing about captives is that they are potentially suited for all industry and business types. Prior to any engagements, we complete a no-obligation preliminary review of your business. This review is based on our expertise and will help determine if a formal feasibility study is recommended.
Each captive is formed with your business in mind. Through a formal feasibility study, we will help you select the coverages that your captive can insure. Since your business is unique, your exposures will be as well.
Typically, a captive formation takes about 45-60 days. This can vary depending on the time of year and the jurisdiction selected.
Your captive is subject to an annual reserve review by an independent insurance actuary and an independent CPA firm financial audit.
Working with third-party vendors allows us to focus on your risk management needs. We work with independent actuaries, CPAs, attorneys, and underwriters. As your captive manager, we coordinate all the services needed to make sure your captive is compliant.
Initially, no. In most cases, the formation of the captive will allow adjustments to be made to your traditional commercial policies, such as increasing your deductibles, which should decrease your current insurance expense. In the future, as the captive develops reserves, further adjustments are possible on a case-by-case basis.
No. We only license and manage captives in domestic jurisdictions, and our risk pool exchange is licensed in North Carolina. While captives can be licensed in over 40 States, the jurisdictions we prefer include North Carolina, Delaware, Tennessee, Nevada, Utah, Oklahoma, Oregon, and Texas.
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