Captive Insurance Programs

Captive Insurance Programs

Captive Insurance has been around since the 1950’s, first utilized to meet the needs of a specific industry. Since that time, the number and types of Captives continues to grow at an accelerated pace and has become a viable RISK TRANSFER option for midsized companies, not just large or “Fortune 500” companies.

Benefits of a Captive can include:

  • Lower Costs of premiums, administration, and overhead expenses related to insurance.
  • Potential profits through dividends earned, investment and interest income.
  • Long term financial strength and stability, limiting the cyclical nature of the insurance market.
  • Membership with like-minded business owners committed to Safety.
  • Enhanced Loss Prevention and Claims Management to an established standard.
  • Improved Cash Flow.
  • Greater control of claims handling, deductibles, and coverages in your Insurance Program.

These Benefits aren’t without risk and commitment:

  • Claims higher than projected in a given year could result in assessments, i.e.: additional premiums.
  • Joint liability for excess claims of other members.
  • Multi year commitment to the program.
  • Participation in owner meetings, safety programs, risk control.
  • Financial disclosures to the Captive Underwriting team.

Captives take Many forms.

Single Parent:

Meets the insurance needs of one company and its various related subsidiaries and wholly owned companies.

Homogeneous Group Captive:

Jointly owned by a group of companies in the same industry.

Heterogeneous Group Captive:

Jointly owned by a group of companies typically with similar risk characteristics, not necessarily in the same industry.

Rent-A Captive:

For companies not large enough to meet requirements of certain other Captives, but can be used to take advantage of the opportunities of owning a captive.

Protected Cell Captives:

Essentially a Rent-a-Captive, but with no risk sharing with other members.

The long term trend is this:

The Best Risks are leaving the traditional insurance market and not returning.

There is much more information available than we can include here. If you would like to learn more about Captives, and determine if this is the right program for you, Evans, Pires and Leonard can help. We can assist you with Feasibility, Underwriting Requirements, Selection of an existing Captive or formation of your own depending on your needs and long-term objectives.

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    Fill out the form to ask a question or request a quote and it will be answered by one of our insurance experts.

    The tax advantages, cash and control improvements, flexibility and accessibility make captive insurance programs very attractive to certain organizations.

    With Evans, Pires & Leonard, you’re not a policy to us. We create a relationship with our customers through earned trust, integrity, experience, and knowledge. Give us a call at 860.289.6816 or email us, or if you prefer fill out and return the convenient form on this page. One of our professionals will contact you to discuss your insurance needs and our alternative solutions in helping to protect you. Since 1967, we have been serving the communities from Tolland to Glastonbury to Portland and Old Saybrook.