Captive insurance is a type of self-insurance that is available to most business owners, regardless of the size of their enterprise, that offers all the benefits of a fully self-funded insurance plan while providing additional incentives and a risk management framework.
A captive insurance company operates in a similar way to a traditional property and casualty insurance company. Find out how a captive insurance company works, according to captive manager Management Services International.
There are five key questions to ask before deciding whether to form a captive insurance company. We rank the questions in order of importance and provide a road map for prospective captive owners to consider.
There are numerous factors to contemplate when deciding whether or not to form a captive insurance company. Read about some of the advantages and disadvantages of captive ownership to consider when deciding whether to form a captive insurance company or not.
When Vermont lawmakers passed legislation in 1981 to allow captive insurance companies to be set up in the state, they did something unique for a US state: authorize a captive domicile that would compete with Bermuda and the Cayman Islands, the world's biggest domiciles. Now close to 3 dozen US states permit the formation of captives.