Captive insurance companies are controlled by and provide insurance coverage to their owners. If you decide to turn to a captive consulting firm to find out more about captive insurance companies, then you’ll learn that those types of insurance companies can be owned by an association, corporation or either an domiciled offshore or onshore company. So why do companies even think it’s a good idea to establish captive insurance companies in the first place?
Setting Up A Captive
Some of the reasons a parent company might want to think about establishing a captive insurance company include:
- Stabilizing and decreasing the cost of insurance premiums
- Having the ability to insure those who were once uninsurable
- Being able to have full control over their insurance program, which is what allows them to stabilize the price of premiums
- Better results for risk management, risk retention and loss control
- Cash flow
- Having a direct connection with reinsurance markets
- Possible tax benefits
- Having all deductibles better organized in one central plan
- Not having to depend as much on commercial insurers
- Insulation from the cycles of the insurance market
If you’re having a hard time getting proper coverage for certain business risks or if you don’t have enough credit for deductibles, then locate a knowledgeable and reputable captive consulting firm today to discuss your options for setting up a captive insurance company.