Captive Management Services
A captive is a licensed “private” insurance company that is wholly owned and controlled by the originating organization (the insured) and can be used as an alternative form of risk management.
A captive operates just like a traditional insurance company by issuing policies, collecting premiums and paying claims. However, it does not offer insurance to the public, and it operates under different regulations than a traditional insurance company.
Essentially, a captive allows businesses or groups to self-insure for specific exposures, essentially pay premiums to itself. This allows the captive owners to retain any potential underwriting profits and/or investment income.
A captive insurance company can provide an innovative solution to your risk financing needs. Establishing your own captive can give your business the opportunity to optimize self-retained risks at a level that reduces your overall cost of risk finance; it can help you insure against risks that might otherwise be uninsurable in the commercial market and it can help bring consistency and efficiency to your global insurance arrangements. A captive can even act as a new and creative revenue source.
Define the problem
Quantify the problem
Identify the cause of the problem
Implement and verify the solution
Maintain the solution