Captive Practice
The INSURICA Captive Practice is built upon the same foundation as our industry-specific practices. We provide consulting and operational management services to our clients through an integrated network of captive experts. As with our industry practices, this integrated network approach uniquely qualifies us to provide customized analysis, risk management, and captive insurance solutions that are specifically tailored to the unique exposures your business faces.
Our Experience & Expertise
Our Captive Practice excels through relationships. We pride ourselves on our relationships with our coworkers, our captive managers, our reinsurers and our clients. When faced with a difficult or technical challenge, each of our team members draws upon the wealth of experience within our entire organization.
Through our Practice based approach, INSURICA is able to provide:
- Industry-leading captive solutions nationwide
- Partnerships with trusted advisors
- Local delivery of international resources. Our approach is never one size fits all.
At INSURICA, our motto is Specializing in You, and our Captive Practice embraces that concept. With each of our clients presenting unique challenges and exposures, it is our job to partner with you to understand your business and provide customized captive solutions designed specifically for your situation.
What Is A Captive
A captive is a special purpose insurance company formed primarily to underwrite the risks of its parent or affiliated groups. Captives are essentially a form of self-insurance, whereby the insurer is owned or controlled by the insured, and they are typically established to meet the risk management needs of the owners or members. In the past, captives were almost exclusively used by only the largest companies, but due to the various types of innovative captive structures, participating in or forming a captive is something that a wide variety of businesses may consider. Once established, captives can operate like a typical insurance carrier or they may be customized to fit the clients unique situation.
The captive market has experienced tremendous growth in recent decades, and many variations continue to flourish as companies come up with more sophisticated ways to use captives. Captives can be domiciled and licensed in both the U.S. and offshore, with the number of competitive domiciles growing each year. The formation of a captive insurance company can be a lengthy process with feasibility studies, financial projections, determining domicile, and preparing an application for an insurance license. Due to the complexity, it is paramount to involve a qualified insurance manager, particularly during the formative stages.
The vast majority of captives insure only the risk of its parent (single-parent captives). There are, however, many different types of captives. INSURICA’s Captive Practice is the resource to help you determine which captive arrangement is best suited to your situation.
Types of Captives
Single Parent Captive – The most common form of captive insurance company continues to be a subsidiary of a single parent that underwrites only the risks of its parent and related affiliated companies.
Group Captive – Captives formed by members of an industry or a trade association (e.g., doctors) for the members to share the risks of the industry or association.
Rent-A-Captive – Captives owned by unrelated sponsors that provide insurance for a fee. In a rent-a-captive endeavor, the insured will be required to provide some capital to supplement the risk of the captive. A rent-a-captive is often used by a company for a program that is too small to justify incorporating its own captive.
Risk Retention Groups – An alternative risk transfer entity created by the federal Liability Risk Retention Act (LRRA). RRGs must form as liability insurance companies under the laws of at least one state—its charter state or domicile.
Medical Stop Loss Captives – A new financing alternative to allow employers more options with their plan designs and the ability to control rising medical insurance costs. These captives can be formed in single parent, group, or rent-a-captive models to allow employers of most sizes to participate.
Resources
Claims
Claims
We define claims management a little differently. We view our role as “a partner in your company’s profitability.”
Loss Control
Loss Control
Loss control has become one of the most important elements of your business’s insuranceprogram.
Alternative Risk
Alternative Risk
Self-insurance, large deductible plans, captive insurance…Our programs are tailored to fit your specific needs.
Find Out More About Our Services and Capabilities
We are here to answer any questions you may have and look forward to hearing from you.
Latest News
Today’s insurance programs must take into account the unique challenges faced by each client. In addition to a strong coverage program, some businesses may need advanced services. INSURICA has the additional Client Services required by complex business operations.
Environmental Liabilities at Agriculture and Farming Properties
The most common environmental and regulatory exposures encountered at agriculture and farming properties include the following:
Addressing Bullying and Cyberbullying
Bullying and cyberbullying remain prevalent issues in schools, posing significant challenges to student safety and well-being. As educators and administrators, it's essential to address these issues proactively and create a safe and supportive environment for all students.
National Work Zone Awareness Week Takes Place April 15-19
The National Work Zone Awareness Week (NWZAW) will take place April 15-19, 2024, in conjunction with National Occupational Research Agenda’s (NORA) Construction Stand-down to Prevent Struck-by Incidents event. In 2021, 956 people died in work zones, according to the NHTSA FARS data. Also in 2021, 108 highway worker occupational fatalities occurred in road construction sites, based on BLS data. Further data is available on WorkZoneSafety.org.