What is a Captive?
A captive is a privately held insurance company established primarily to insure the risks of its affiliates.
A captive is a privately held insurance company established primarily to insure the risks of its affiliates. Captives allow a company’s risk to be judged on its own merit, rather than being charged a premium that is based on the risk of its entire block of business. Captives can provide tax benefits for the companies who use them and often provide claims handling services that can be substantially better than the service provided by commercial insurers. Day-to-day operations are controlled by the owners, which include, but are not limited to, underwriting, claims decisions, and investment policy of the captive.
Advantages of a Captive
Safe Harbor Insurance Captive Claims Funding
Why Safe Harbor Captive?
Companies utilize captives to assert greater control over their risk exposure. This control generates a wide range of benefits that make a captive insurance company advantageous. Safe Harbor Captive was established to address the rising cost in the health insurance markets, reward good risk with lower rates, stabilize renewals and provide dividends based on the captive’s performance. Dividends can range from negative in bad years to 20% and higher in good years. Safe Harbor has the ability to control which groups and risks they’re willing to permit to participate in the captive. This allows for improved risk management and profitability.