What is a Captive

Captives are defined as independently owned and operated insurance companies that provide insurance to, and are controlled by, their owners.  In simple terms, a captive insurance company insures (or reinsures) its owner’s specific risks. It generally reduces the cost of insurance and can return underwriting profits and investment returns in the form of dividends. Owners of captive insurance companies can control their insurance destiny and are no longer subject to the unpredictability of conventional insurance.

Most captives are licensed in offshore domiciles to take advantage of the more business-focused, yet still very effective, regulatory environments, as well as flexibility in regards to coverage and capitalization.

Captive Advantages

Stability of insurance costs
Control of costs
Ownership
Improved cash flow
Improved risk management culture
Better availability of coverage, or coverage customization
Asset protection,
New profit center
Estate planning

In short, to “Take control of their Insurance Destiny” and for this reason, more and more organizations are evaluating captive insurance.

 

Contact

© 2015 Kensington Management Group

2nd Floor, Genesis Building, George Town
P.O. Box 10027, Grand Cayman KY1-1001, Cayman Islands

Tel: 345.946.2100 • Email:info@kensington.ky

Connect With Us