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Nine Reasons for Forming a
Captive Insurance Company

Q: What are the reasons for forming a captive insurance company?

A: There are numerous advantages to forming a captive insurance company.

A partial list includes:

1. the alternative to trading dollars with commercial insurers in the working layers of risk,
2. direct access to the reinsurance markets,
3. coverage tailored to your specific needs,
4. accumulation of investment income to help reduce net loss costs,
5. improved cashflow control,
6. incentive for loss control,
7. greater control over claims,
8. underwriting and retention funding flexibility, and
9. reduced cost of operation.