How Does a Captive Insurance Company Differ from Traditional Coverage?

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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