what is captive insuranceTraditionally, captives were wholly-owned insurance subsidiaries that provide funding vehicles for their parents’ risks.

Today, captives can be sponsored by a third party and underwrite third party risks. There are now close to 7,000 captive insurers worldwide. Over 90% of Fortune 500 companies employ some type of captive insurance company arrangement.

The advantages of captives are multiple and can be significant:

  • Potential short and long-term cost savings
  • Customized employee benefits designs and property & casualty programs
  • Enterprise risk financing applications
  • Potential financial efficiencies like cash flow and insurance

More information about what is captive insurance can be found in our Alternative Risk Funding and Captives section.