LLLLLLLLL

 

 

HOME

 

IN SUMMARY

 

 

Growth in captive insurance company business has primarily originated from the Property & Casualty sectors of the insurance industry. The advantages captives offer are difficult to match with other established risk financing techniques. This is borne out by the fact that the majority of the insurance company organizations formed stick with it once they choose to enter a captive insurance company self-insured arrangement. A successful captive insurance company offers; greater pricing flexibility, broader coverage, more closely tailored services, and more control over claims handling and other insurance related services and activities than the conventional commercial insurance company industry. These benefits remain the same, regardless of the insurance pricing available in the commercial market.

 

A new source of growth in captive insurance companies will most likely come from the employee benefit sector of the labor market. In 2000, the Department of Labor changed its prohibited transaction stance on the use of captive insurance companies to insure employee benefits such as short and long-term disability and employee group term life insurance. This change has cleared the way for other companies to meet certain less restrictive conditions than previously applied to use captives for this purpose. This will open a whole new market to the captive insurance company self-insured industry.

 

 

F. Darrell Lindsey

State Approved Captive/RRG Manager

U.S. State Licensed Agent/Broker

 

 

 

 

 

 

 

 

 

 

BACK USE ARROW

TO PRINT USE PRINT PREVIEW