Captives are owned by the companies they insure. Many companies seek captive consulting to identify all the advantages and disadvantages of starting a captive.

Business Opportunity

Captive insurance is a business, and when you start a captive insurance company, you actually start a new business. Because the insurance industry is probably significantly different from your company’s industry, you are able to diversify your financial risk across multiple industries. In addition, many captives grow into commercial insurance companies, further expanding their earnings potential.

Risk Management

Captives must still complete an underwriting process for any risk they insure. This means that your captive will be conducting an in-depth review of your company and all its processes and products. Not only will they identify your risks, but the underwriting process will determine their probability.

With this information, your company can focus on managing these risks. Revising processes, purchasing new equipment or implementing safety procedures may …