Man and women reviewing paperwork


Advantages to forming a Captive include:

  • Lowering the cost of insurance

  • Obtaining insurance not otherwise available

  • Custom designing the type and level of coverage needed by the company

  • Controlling the claims process, particularly in litigation with third-party insurance companies

  • Benefitting from good claims experience and providing an incentive for improved risk management

  • Having access to the reinsurance market where typical cost ratios are far less than conventional primary insurers and where a wider array of insurance products are available at more effective rates

  • Having investment control over the captive’s assets (i.e. reserves and free surplus) which can then be retained in anticipation of future losses or to fund shareholder distributions

Business Meeting