Top 10 Questions on Captive Insurance: Insights from Milliman Experts Podcast

In a recent Milliman podcast, experts Mike Meehan, Kim Guerriero, and Rob Bachler explore the increasing reliance on captive insurance companies as a risk management solution. They address fundamental questions surrounding the function, benefits, and operational considerations of captives, highlighting their relevance in today's challenging insurance market. Captives, which are insurance companies owned by the entities they insure, offer organizations a way to create capacity where commercial markets may fall short, especially in areas like cyber risk and property insurance.

The discussion also covers the different types of captive insurance companies, including single-parent and group captives, and the strategic steps organizations should take when considering forming one. The experts emphasize the importance of thorough planning, selecting the right service providers, and understanding the long-term nature of captives. With over 7,000 captives worldwide, including many in key domiciles like Vermont and Bermuda, this episode offers valuable insights for companies exploring captives to manage evolving and unforeseen risks.