Alternative Risk Product
Own your insurance.
Control your costs.
Form your own licensed insurance company to retain risk, access reinsurance markets, and customize coverage. A long-term alternative risk solution for businesses with substantial premiums and stable loss profiles.
How captive programs work
A structured process with expert partners and regulatory approval.
Feasibility & Design
Actuarial feasibility, lines of coverage, limits/retentions, and pro‑forma financials.
Domicile Selection & Licensing
Choose a domicile (e.g., VT, HI, Bermuda, Cayman). Meet regulatory capital and governance requirements.
Fronting & Reinsurance
Use a fronting carrier if admitted paper is needed; shape retained risk with quota share or excess of loss reinsurance.
Operations & Governance
Engage a captive manager, TPA, actuary, and auditor; implement board governance, policies, and reporting.
Long-Term Risk Financing Strategy
Captive insurance is a long-term risk financing strategy (5–10+ year commitment) suitable for businesses with substantial annual premiums, stable loss history, strong balance sheets, and a desire for program control. It requires capital, governance, regulatory compliance, and service provider coordination (captive manager, actuary, TPA, auditor).
Why consider captive insurance
Traditional insurance markets are cyclical, restrictive, and often lack transparency. Captive insurance allows you to own a licensed insurer, smooth premium volatility across market cycles, retain underwriting profit, and customize coverage for hard-to-insure risks. For businesses with substantial annual premiums, stable loss experience, and multi-year planning horizons, captives offer cost stability, claims control, and access to reinsurance markets.
Is a captive right for your business?
Captives work best for organizations with specific characteristics.
Ideal Candidates
- • Substantial annual commercial premiums
- • Stable, predictable loss history
- • Strong balance sheet & capital capacity
- • Multi-year (5–10+) planning horizon
- • Commitment to safety & loss control
- • Desire for program control & transparency
- • Hard-to-insure or unique risks
When Traditional Insurance Is Better
- • Volatile or unpredictable losses
- • Limited capital or cash flow constraints
- • Short-term cost focus (1–2 years)
- • Unwilling to commit to governance
- • Primarily seeking tax benefits
- • Insufficient premium volume
Key benefits
Advantages of forming your own captive insurance company.
Cost control & premium reduction
Take control of your insurance costs by forming your own insurance company. Reduce premiums, retain underwriting profits, and gain better control over claims management.
Customized coverage
Design coverage specifically tailored to your business needs without the constraints of traditional insurance market policies and restrictions.
Risk retention with stop‑loss support
Retain predictable risk and transfer tail‑risk via reinsurance; align incentives for stronger loss control and return‑to‑work programs.
Underwriting profit & dividend potential
Retain underwriting gains and unused loss reserves. Group captives may distribute dividends to member-owners based on favorable experience.
Access to reinsurance markets
Access wholesale reinsurance markets directly, shape your retained risk profile, and stabilize long‑term costs across market cycles.
What you'll need for a consultation
Have this information ready for a captive feasibility analysis.
Business Profile
- •Annual commercial insurance premiums (WC, GL, property, etc.)
- •Current insurance programs and carriers
- •Number of entities/locations and states of operation
- •Years in business and ownership structure
- •Industry, operations, and revenue
Risk & Claims History
- •Claims history (5-10 years)
- •Loss frequency and severity
- •Current loss ratios
- •Risk management programs
- •Safety and loss control measures
Financial Information
- •Annual revenue
- •Financial statements
- •Risk tolerance and capital capacity
- •Reinsurance needs
- •Coverage requirements
Captive Structure
- •Desired captive domicile(s)
- •Feasibility study scope
- •Coverage lines to include
- •Target limits and retentions
- •Fronting & reinsurance structure
- •Governance and TPA preferences
- •Long-term goals
Ready to explore captive insurance?
Schedule a consultation with our alternative risk professionals to evaluate if captive insurance is right for your business.
Captive structures
Different captive options to meet your specific needs and circumstances.
Single-parent captive
Owned by one company or group. Provides maximum control and customization. Best for businesses with substantial annual premiums and stable risk profiles seeking full control over their insurance program.
Group captive
Multiple member-owners pool risks and share governance. Lower individual capital requirements than a single-parent captive. Members receive dividends based on collective underwriting performance. Best for businesses seeking captive advantages with shared infrastructure and peer collaboration.
Protected cell company (PCC)
Segregated portfolio structure allowing multiple participants to share a captive "core" while maintaining legally separated assets and liabilities in individual "cells." Faster formation and lower costs than standalone captives, with cell-level financial isolation.
Association captive
Owned by members of a trade association or industry group. Leverages group purchasing power and shared expertise. Benefits members with cost savings and industry-specific coverage solutions.
Rent-a-captive
Use an existing captive structure without forming your own. Lower initial costs and faster setup, though with less control. Good for testing captive benefits before full commitment.
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Coverage, limits, discounts, and eligibility vary by carrier and state. Examples are educational and not a guarantee of coverage. Review your issued policy for terms, conditions, and exclusions.
Frequently asked questions
Common questions about captive insurance
Still have questions?
Call us at (504) 315-4536Contact Us About Captive Insurance
Interested in exploring captive insurance for your business? Fill out the form below and one of our experienced alternative risk professionals will contact you to discuss a feasibility analysis.