There are many different options for a company when it comes to insurance, and increasingly many companies are choosing an alternative risk management strategy called a captive. What used to be the exclusive territory of large companies has become more suitable for both large and medium-size business today. There are many benefits of choosing captive solutions, and this article will discuss some of them in more detail.
One of the main reasons companies choose to become part of a captive is for the cost stability and savings. Insurance markets are constantly changing, and clients are at the whim of the market trends and averages, which can be frustrating and costly to your business when the markets are cyclically higher.
Another common reason businesses are looking for captive solutions is the flexibility and customization they can offer. If your business has specific risk that is difficult to find coverage for out on the open market, joining a captive could be a great solution for you.
Businesses also like that captives give them more control. Not only control over the claims process, but also control over where and when the money from premium payments is invested. Since the members of a captive control capital investments, it also means members of the captive can realize income gains on the investments.
If your company has become increasingly frustrated with the current market for insurance products that is available, look into what kinds of captive solutions are available for you. Click here to more information.