How Does a Captive Insurance Company Differ from Traditional Coverage?

The problems that are addressed today by captive insurance companies are problems that most organizations face in one form or another:

• Unavailability of coverage

• Coverage that is too expensive

• Coverage that can’t be tailored appropriately for an organization’s needs

• Premium rates that do not meet a particular organization’s loss profile

• Inflexible policies

• Inflexible terms

• Inability to estimate loss frequency or loss severity

• Lack of a tax benefit for retaining risk