Take control of your insurance.
Group captive insurance designed by Byrne Insurance Group.
Become an owner of your own insurance company. Captive insurance helps companies become owners of their own insurance companies rather than buying insurance from a third-party insurance company. We’re here to help show you how.
What is group captive insurance?
Captive insurance helps companies become owners of their own insurance companies rather than buying insurance from a third-party insurance company. This is an option for corporations or groups that want to take financial control and manage risks by underwriting their own insurance rather than paying premiums to a third-party insurance company.
What should you expect?
The initial formation of a captive insurance company can be a lengthy process and it requires in-depth planning. In the initial formation stages, it is important to identify the risks that will be insured by the captive and to make sure they are real insurance risks with a low probability of occurrence. The goal of a smaller captive could be to transfer the larger risks to the commercial carriers and to only assume the smaller or more manageable risks.
What is the difference between self-insurance and captive insurance?
In a traditional commercial insurance arrangement, a business owner pays premiums to a third-party insurance company, effectively transferring some or all the business’s risk. The third-party insurance company makes a profit off of the premiums they charge their customer from the excess of losses. They keep the entire premium regardless of if the customer files a claim or not.
In some instances, self-insurance may be a better option.
In self-insurance, instead of transferring risk to a third-party company, you set aside money to fund future losses. In some instances, this can help increase profits and lower premium costs. This option will provide you with additional control and access to claim management data. In this method, you can retain any additional premium funds that are set aside and not paid towards claims. A potential downside of this type of self-insurance is that you may not have enough funds available to cover significant or multiple losses.
Benefits of captive insurance.
Captive insurance offers all the benefits of a self-funded plan, but it also provides additional incentives and risk management. In captive insurance, a company insures itself again future losses by creating coverage that is specific to protect their own unique business risks. They do this by creating their own insurance company where they can protect their business against large losses.
- Insulation from Market fluctuations
- Improved Risk Control and Safety
- Funding and Underwriting Flexibility
- Tax Strategies and Advantages
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