Captive InsurancePrograms
Captive insurance is a powerful risk financing tool that helps you manage higher deductibles, reduce long-term costs, and participate in underwriting profits—while maintaining your existing lines of coverage.
What Is Captive Insurance?
A captive is a licensed insurance company that you own and control, created specifically to insure your own risks and provide alternative risk financing
How It Works
You pay premiums similar in cost to your traditional insurance program. Here's what makes it different:
- •Roughly 1/3 of your premium goes into a "Loss Fund" that earns interest
- •You're responsible for paying the first portion of each claim (your retention)
- •The insurance company covers the rest above your retention
- •Claims are paid from your Loss Fund
- •If money remains in the fund at year-end, you get it back on a 3-5 year rolling accounting cycle
Why Captives Are Unique
Every company has different needs, risk profiles, and captive structures. The right captive program depends on your industry, size, loss history, and strategic goals.
Rather than giving generic examples, we prefer to have a detailed conversation about your specific situation and design a captive solution that fits your unique needs.
Ready to explore if a captive makes sense for your business? Let's talk through your options and create a customized strategy together.
Why Companies Choose Captive Programs
90% of Fortune 500 companies use captives to reduce costs, stabilize pricing, and gain control over their insurance programs
Cost Stabilization & Reduction
Replace volatile market pricing with performance-based costs. Companies with strong safety records can reduce insurance expenses by 15-30% over time.
Underwriting Profit Participation
Keep the underwriting profits instead of giving them to insurance companies. Unused premiums and well-managed claims return to your company as distributions.
Investment Income
Earn returns on premium reserves, loss reserves, and collateral funds while they wait to pay claims. These earnings compound over time and enhance overall returns.
Enhanced Risk Management
Gain complete visibility into claims data and trends. Direct access to risk control resources helps reduce claim frequency and severity across your operations.
Greater Control & Flexibility
Customize coverage terms, manage higher deductibles efficiently, and control the claims process. Choose your own service providers and legal counsel.
Tax Advantages
Premiums paid to captives are tax-deductible business expenses. Underwriting profits and investment income accumulate on a tax-deferred basis until distributed.
Financial Impact: Real Numbers
Average cost reduction over 5 years
Fewer fatalities vs industry average
Fewer workers' comp claims
*Based on Captive Resources study of 15 mature group captives
Types of Captive Structures
Choose the captive structure that best fits your company's size, risk profile, and strategic objectives
Group Captive Insurance
Join with other companies in your industry to share risks and rewards. Members collaborate on underwriting, loss control, and reinsurance decisions while benefiting from shared expertise and lower operational costs.
Ideal For:
- Mid-sized companies seeking captive benefits without going solo
- Organizations wanting industry peer collaboration
- Businesses with $250K+ combined annual premiums
- Companies ready to invest in risk management
Single-Parent (Pure) Captive
Establish your own licensed insurance company to insure your risks. Provides maximum control, customization, and potential for long-term financial benefits. Requires substantial commitment and expertise.
Ideal For:
- Large enterprises with $750K+ annual premiums
- Fortune 500 companies (90% have captives)
- Organizations with complex, unique risk profiles
- Companies seeking maximum control and flexibility
Our Captive Consultation Process
We guide you through evaluating captive programs and connecting you with the right partners
Feasibility Study
Analyze your loss history, current premiums, and risk profile to determine if a captive makes sense
Structure Selection
Choose the optimal captive type and domicile based on your goals, size, and industry
Partner Connection & Setup
Connect with experienced captive managers who handle entity setup, licensing, governance, and initial capital funding
Ongoing Management
Monitor performance, manage claims, adjust strategy, and receive distributions as earned
Frequently Asked Questions
Common questions about captive insurance programs
Explore Captive Solutions for Your Business
Let's discuss whether a captive program makes sense for your organization. Our experts will analyze your risk profile and provide customized recommendations.
Why Work With Us
Get expert guidance on captive insurance programs, feasibility analysis, and risk management strategies. Our team specializes in alternative risk solutions and understands your unique needs.