Captive Insurance

Many businesses have suffered dramatic increases in insurance premiums over the past few years, even though their claims record is good.

Some companies can even find it difficult to find an insurance company to offer them certain types of commercial insurance at all.

In a number of cases, organisations are confident that their insurance business is profitable to insurance companies, and that they are, in effect, subsidising other parties whose claims records may be inferior.

By participating directly in its own insurance business through the use of a captive insurance company, appropriate organisations can share in the profit currently accruing to insurance companies and effectively reduce overall cost. Since the captive's overhead expenses will be lower than those of a conventional insurance company, potential profits are further enhanced.