Frequently Asked Questions

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A captive insurance company is a legal entity formed by the parent company to transfer risk from the parent entity and affiliated entities to your private insurance company. There are also group captives and cell captives that will allow unrelated entities to form an insurance co-op to share the initial funding cost. Captive insurance companies are governed and regulated.​

This is one of many forms of alternative risk management.​

Qualification as an insurance company depends primarily on: ​

• Presence of insurance risk​
• Risk Shifting​
• Risk Distribution​

• All insurance premiums are retained until a claim is actually paid​
• If the parent company effectively manages its risk profile, the premium cost can be less than standard insurance.​
• Access to the reinsurance and wholesale insurance market​
• Insure otherwise self-insured risks in a planned way.​
• Control and flexibility in a hard market​
• Tax incentives​
• Investment incentives​
• Asset/capital protection​
• Long term there tends to be a paradigm shift that makes the parent company naturally more aware. Instead of being an insurance buyer, you are a risk seller. ​
• You have complete flexibility on how to handle your risk.​

Cost varies depending on the domicile you choose and the initial risks you decide to insure inside your captive insurance company.  Click here to schedule a meeting: https://schedule.nylas.com/lorin-60min