Captive Insurance Programs

Captive Insurance Programs


Recently, Alternative Risk Financing options are gaining more attention. Before discounting these options, take a look into Captives. Companies that consider a Captive approach to risk financing desire more control, have a good safety record, and control their claims.

Captive structures can take many variations, but the three most common ones are:

Single Parent / Pure Captives: As their name suggests, these captives are owned and operated by a single owner. These captives are best for companies with significant size and scale.

Group Captives: In group captives, the mix of companies that owns the captive, can be related by industry (Homogenous) or unrelated (Heterogeneous) representing different industries. It insures the individual risks of each member, as well as the catastrophic risk of the group.

Rent-a-Captives: This captive is owned by an outside organization (i.e., Broker, Reinsurer, or Insurer). It allows members to join an established captive for a fee without actually participating in the captive insurance company ownership or management.

Even though these variations differ, they also share the same general characteristics:

  • They are legal entities
  • They are licensed as an insurance company
  • They insure a proportion of their shareholders’ risks
  • They are insurance companies owned by the captive members/shareholders (with the exception of Rent-a Captives)

Each risk financing option has its own benefits, as well as drawbacks. The best way to determine which risk financing option is right for you is to perform a historical analysis. This ensures the risk management plan is tailored to meet your specific needs. Reach out to TSIB and speak with one of our Risk Consultants. Let us help you find the right insurance plan for your business.

discover which risk financing option is best for you

TSIB’s Risk Consultants are currently servicing the following locations:

East Coast: New York City, NY; Bergen County, NJ; Fairfield County, CT; Philadelphia, PA

Texas: Austin, San Antonio, Houston, Dallas

California: Orange County, Los Angeles County, Riverside County, San Bernardino County, San Diego County

Image credit: Freedomz/Shutterstock