Cost Savings

Establishing one’s own insurance vehicle may result in significant savings which can be retained within the captive or repatriated to the parent of the captive.  These savings are achieved by capturing underwriting profit, accessing the reinsurance market and exercising better control over the claims process.

Enhanced Risk Management

A captive can provide protection against risks which prove to be too costly in commercial markets or may be unavailable. A business can therefore insure otherwise uninsurable risks and pay deductible premium payments for such risks. Some businesses continue to maintain existing policies for their traditional coverage and supplement existing coverage by addressing their self-insured risks with their captive. Policy features, coverage and limits can be drafted to meet specific enterprise exposures. This allows for many risk-management advantages, including: