Save on Insurance With a Single Parent Captive

Captive insurance programs have been around for more than half a century, providing everything from liability and risk protection to employee health coverage. Single parent captive insurers are currently the most popular form, although there are still plenty of companies seeking captive partnerships. Single parent setups save money for companies that make the investment in a few key ways:

  • All of the insurer’s profits are captured as investment income by the parent company
  • Practically any kind of insurance line can be underwritten
  • Insurance review and updates linked to demand are accessible and easy to calibrate
  • Tax benefits when the investment is structured and calibrated properly
  • Minimized premium costs

With all the benefits of being the sole parent company of a captive insurer, it’s no wonder the investment has become so popular.

Management and Structure

Unless your parent company is also an insurer, chances are good that your existing staff and officers do not have the depth of experience needed to build the policies you’re counting on the captive to provide. Luckily there is an easy solution. There are many industry specialists whose main niche is the management and setup of single parent captive companies. These firms provide the experience and ongoing management for a simple negotiated fee, streamlining both the setup process and the monthly overhead for your new insurer.

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