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Cons of a Captive Insurance Plan Increased risk With a captive, the owner-insureds put their own capital at risk. If a company experiences a high number of claims, that capital could be lost. This is why its important to have robust risk management policies.
A captive is an insurance company set up by its owners primarily to insure against its own specific risks. Captives are an effective way to take financial control of insurance allocations and manage risks.
Cons of a Captive Insurance Plan Increased risk With a captive, the owner-insureds put their own capital at risk. If a company experiences a high number of claims, that capital could be lost. This is why its important to have robust risk management policies.
Association Captives: Any company that insures risks of the member organizations of the association, and their affiliated companies. Industrial Captives: Any company that insures risks of the industrial insured that comprise the industrial insured group, and their affiliated companies.
Increase Control, Reduce Costs Coverage tailored to meet your needs. Reduced operating costs. Improved cash flow. Increased coverage and capacity.
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Reduced operating costs long-term. May produce underwriting profits and investment income. Provides direct access to reinsurance markets. Tax deduction for the parent company for the insurance premium paid to the captive.
For many businesses and individuals, cell captive insurance is a valuable risk management tool. It allows them to self-insure against risk and provides coverage tailored to meet their needs, reduced operating costs, broader coverage and a more efficient way to finance risk.
Traditional insurance plans are designed to cover as many people as possible. But these plans tend to be generic and their coverage can be limited to only certain types of risk. On the other hand, captive insurance provides increased flexibility and customization.

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