We recognize that traditional insurance solutions may not always align perfectly with every business's unique needs. Captive Risk Solutions offer a sophisticated alternative that allows businesses to take control of their insurance and risk management by forming their own captive insurance company. This approach is ideal for businesses looking to manage risks more effectively, stabilize insurance costs, and achieve long-term financial benefits.
Captive insurance companies are wholly owned subsidiaries created to provide insurance to the parent company and its affiliates. Captives enable businesses to finance risks internally, offering greater flexibility and control over coverage terms, claims management, and insurance costs. By forming a captive, businesses can retain the underwriting profits and investment income that would otherwise go to traditional insurers.
Insures the risks of the parent company and its subsidiaries.
Owned by multiple non-related companies, allowing smaller companies to benefit from the captive model.
A smaller scale captive that can be used by mid-sized businesses, subject to specific IRS rules and tax benefits.
Liability insurance companies owned by its members, typically used by businesses in the same industry.
Tailor insurance policies specifically to the needs of your business, filling gaps in conventional insurance coverage.
Potentially lower insurance costs by reducing reliance on commercial insurers and retaining underwriting profits.
Improve risk control by having a vested interest in reducing losses, leading to better overall risk management.
Accumulate assets through the captive that can be used for various purposes, including funding other investment opportunities.
In some jurisdictions, captives may provide tax benefits, including deductions for premiums paid to the captive.
Able Insurance specializes in helping businesses assess whether a captive insurance arrangement is right for them. We provide end-to-end support, from feasibility analysis and structure design to implementation and ongoing management of your captive insurance company.
A captive insurance company is an insurance company established by a parent group or groups, with the specific objective of insuring the risks of its owners. Captives are a form of self-insurance where the insurer is owned wholly by the insureds; primarily, they insure the risks of their parent company or related entities.
Captive insurance is typically used by corporations, groups, or associations to insure themselves against a variety of risks. It’s particularly attractive to companies looking for a customized risk management solution that traditional insurance may not provide economically.
Captives can insure a wide range of risks, including property damage, general and professional liability, employee benefits, workers’ compensation, and more. Some captives also cover more specific or unusual risks unique to the parent company’s operations.
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