Captive Management Services 

Considering a Captive?

The ideal captive candidate is a successful, profitable, large to mid-market organization in any industry, including government entities and non-profits, that often has hard-to-define/place risks or organizations that have a strong emphasis on risk management.

Criteria for Forming a Captive:
• Good risk management and/or loss ratios
• Long-term commitment
• Financially sound
• Willing to assume risk
• Has difficult to place coverage
• Has predictable insurance risk
• Has formalized risk management program

Explore Our Key Services

Companies establish captive insurance vehicles to achieve one or more of these benefits; cost, compliance, control, cover, capacity, and commercial — that provide strategic value to the parent organization. 10XB captive advisory professionals, help guide organizations through the decision-making process, understanding the pros and cons, and other alternative applications on the way to making a well-informed decision before investing in this long-term risk management program.

Captives, acting somewhat like a traditional insurer, can participate in third-party insurances offered to customers, vendors, or other related parties, such as extended warranty insurance programs or sub-contractors under an owner-controlled insurance program. Additionally, if / when the captive performs well, funds from those premiums are kept in the captive, which creates a new profit center for the parent company.

Captives, acting somewhat like a traditional insurer, can participate in third-party insurances offered to customers, vendors, or other related parties, such as extended warranty insurance programs or sub-contractors under an owner-controlled insurance program. Additionally, if / when the captive performs well, funds from those premiums are kept in the captive, which creates a new profit center for the parent company.

Captives also provide a means to consolidate the risk of non-employed contractors or suppliers through a master insurance program, which is fronted by a commercial insurer. The most common types of programs include:

• Construction wrap-up programs.
• Medical malpractice facilities for non-employed physician groups.
• Auto liability coverage for independent contracted drivers.
• Supply chain liability programs.

Insuring these risks in the captive (minimum 30% of total premium) also creates risk distribution, which supports tax deductibility of captive premiums for the parent company (insured) and will assist the captive be recognized as an insurance company for federal tax purposes. Diversification of the captive insurance company’s underwriting portfolio is also be achieved through pooling mechanism where participating captives “share” their loss experience by transferring a portion of their risk in exchange for assuming a percentage share of the unrelated risks of other treaty participants.

10XB services captives with the highest expectations in providing a viable alternative to traditional markets that is well understood and managed. The Captive reviews and assessments evaluate alternative risk transfer process but making them simple and transparent. Although this process can appear daunting, with 10XB expertise and experience to properly review your business group needs and deliver a cost-effective analysis of the risk and financial benefit of captive management…. It is made simple and understandable.