BUSINESS INSURANCE & RISK MANAGEMENT
Captives & Alternative Risk Solutions
We simplify the complex world of captive insurance by providing education, guidance, clarity, and options – so you can make the right decision for your organization.
Why Consider A Captive?
Insurance is tailored to cover a range of risks—from traditional needs to enterprise-level exposures. Your captive structure defines how much risk you retain or transfer.
Well-performing captives return underwriting profit to owners, lowering net insurance costs and improving long-term financial outcomes.
Premiums reflect your organization’s loss experience rather than broad market swings, creating insulation from volatility and unpredictable pricing.
As a licensed insurance company, captives can access reinsurance markets not available at the retail level—often at more competitive rates.
Captives deepen control over claims and risk strategy while aligning financial incentives with strong loss prevention practices—keeping premiums and losses low.
Is a Captive Right for Your Organization?
Captives are best suited to financially stable, mid-to-large-sized organizations with proactive risk management, strong safety records, and high annual insurance premiums. They can be a strategic option for industries with complex, specialized, or hard-to-place risks.
Captives work best for organizations with long-term, successful risk management programs. Companies with a loss ratio of 50% or less relative to casualty premiums demonstrate the discipline needed to succeed in a captive.
Many organizations form a captive to recapture unused premiums—sometimes up to 60% of their insurance spend. However, the most successful companies are those committed to disciplined risk management and long-term loss reduction. Forming a captive solely for wealth accumulation or tax advantages often leads to underperformance and missed benefits.
Successful captive formation starts with executives who understand the story behind the numbers. Organizations that partner with captive advisors who take an educational approach and can help interpret the full picture—how risk management, claims, premiums, and captive options interact—are best positioned to thrive in a captive.
A strong risk management culture is the number one reason captives succeed. At the core, the insured becomes an owner—or part owner—of the captive insurance company. By integrating risk management into long-term business strategy, organizations can prevent losses, stabilize premiums, and maintain coverage continuity across cycles. Companies with a proven history of reducing losses are best positioned to thrive in a captive.
STRUCTURED RISK SOLUTIONS
Manage Risk and Improve Capital Efficiency
Structured risk solutions help your organization manage risk strategically while optimizing capital. Programs are tailored to your business and may include:
- Efficient Risk Transfer – Multi-year agreements or captives smooth exposure and costs beyond standard annual insurance.
- Improved Capital Efficiency – Free up cash that would otherwise be held for potential losses, allowing reinvestment in your business.
- Increased Capacity – Manage larger or more complex risks than the standard market allows.
- Tailored Solutions – Custom programs aligned with your industry, product lines, and financial cycles.
PARAMETRIC INSURANCE
Simplify and speed up the claims process.
Parametric insurance provides a simplified, trigger-based approach to coverage, helping businesses respond quickly to specific events. Key features include:
- Predefined Triggers – Payments are triggered by measurable events, such as a certain level of rainfall, wind speed, or earthquake magnitude.
- Fast Payouts – Claims are paid automatically when the trigger occurs, eliminating long verification processes.
- Predictable Coverage – The payout amount is agreed in advance, so you know what to expect and can plan accordingly.
- Focused Protection – Ideal for businesses exposed to natural disasters or other quantifiable risks where traditional insurance may be slow or insufficient.
ARTICLE
Understanding Group Captive Insurance in P&C
Harnessing the Power of Property and Casualty Insurance Group Captives to Enhance Risk Management and Control Costs.
Connect with an Insurance Advisor
