CAPTIVE

INSURANCE

An insurance plan that is wholly owned by its insureds with the primary objective to lower risk and financial costs of its insureds.

A captive allows a company to take control of their insurance plan and benefits which gives your executive team better control, more flexibility, and ulitmately reduces your company’s annual costs over time. Your increased control will allow you to build equity within your captive by breaking down your premium payments into three different sections- portion 1 goes to reinsurer, portion 2 is operation costs, and portion 3 goes into a loss funds for the captive. There are three types of captives- Pure Captive, Group Captives, and Cell Captives. They are licensed and regulated by insurance agencies. 

 

WHAT  CAN

CAPTIVES COVER

 

 

PROPERTY & CASUALTY
EMPLOYEE BENEFITS
GENERAL LIABILITY

Is a Captive Right for Your Company?

A captive is best for companies with:

*Good risk management

*Long term commitment

*Financially sound

*Driven by an interest in financing assumed risk positions

*Reasonably predictable insurance risk

Advantages

* Save and Manage Costs

*Increase Control

*Improve Risk Management

*Pricing Stability

*Increased Cash Flow

TYPES OF

CAPTIVES:

 

Pure Captive is owned and operated by a single owner and only insures the risk of the parent company. This is the most common type of captive. Group Captive is owned by a group of companies to cut down on the individual expenses. This captive insures the risks of the group. This can be subject to joint liability. Cell Captive is owned by a third party sponsor and sets up the accounts/ holds premiums, and capital. This particular captive insures the risk of multiple insureds. Participants covered under a participation agreement rather than a shareholder or member agreement.

HOW CAN RINEHIMERBAKER

HELP YOU START A CAPTIVE:

 

RINEHIMERBAKER CAN GUIDE YOU THORUGH THE CAPTIVE PROCESS AND PROVIDE THE REQUIRED ACCOUNTING SERVICES. THIS WILL REDUCE YOUR COMPANY’S RISK AND ELIMINATE UNNECESSARY PREMIUMS WHILE NOT ADDING ADDITIONAL WORK TO YOUR TEAM.

Find Out More From Our Team

© Copyright 2017 - rinehimerbaker