A Different Kind of Insurance
If you’ve ever thought about starting your own insurance company, you know there’s a lot to consider and different paths you can take. Before you jump on board, be sure you understand the captive insurance definition.
What Is It?
In short, captive insurance is an insurance company owned and operated by the insured. Many people choose this option after shopping around for insurance and deciding that a plan or policy does not adequately meet their needs. Captive insurance allows people to have more control over the insurance process and policy making. However, it also means that the insured is creating a self-insurance company by placing their money in the company. Essentially, it is an investment, albeit a risky one.
What Are The Benefits?
There are many benefits involved with a captive insurance business. Some of these include the following:
More control over the policies offered
Sharing in the company’s profits
Designing specific policies
The Choice Is Yours
There are many options in the insurance industry, so much so that it can be overwhelming sometimes. However, there are now alternatives to the traditional insurance route and many are choosing this new path. Now that you understand the captive insurance definition you can make your decision whether to choose traditional insurance or this form of self-insurance.