Captive insurance companies, those that are owned and controlled by the companies it insures, offer a way for businesses to cut insurance costs by as much as 60%. As a result, alternative risk financing mechanisms, which include Captives, currently account for over 50% of the commercial insurance premiums in the United States. For those who qualify, Captives are a more stable and less expensive alternative to traditional insurance.

Captives represent about to 25% of all insurance premiums.

A major reason businesses go into Captives is to have insurance costs based on their individual experience and not that of the general population. In the traditional marketplace better risks help fund the losses of those with more claims. This program is only for superior risks; those whose insurance premiums significantly exceed their losses.

In a Captive, companies self-insure the lower-layer of claims that have become predictable and level over time. Reinsurance is then purchased directly to cover larger claims and guarantee a maximum cost for the policy year.

'The New York Times', 'The Los Angeles Times', CFO Magazine, Accounting Today, 'Long Island Business News' and 201 Great Ideas for Your Small Business by Bloomberg Press have written about our program. Captives are not new, they represent close to 25% of all insurance premiums. If you join a captive you will not be a pioneer. This is a mature, stable and significant segment of the insurance industry.

SELF-INSURANCE THROUGH A CAPTIVE INSURANCE COMPANY