Captive Insurance
Preserving wealth … and the bottom line … is critical to companies small and large. Add in a shift toward risk management and self-insurance in corporate America, and it’s easy to understand the appeal of Captive Insurance.
A Captive is typically established to fill gaps in insurance coverage, either where the conventional insurance market cannot provide coverage or the cost is prohibitive. It is a risk management technique where a business forms its own insurance company subsidiary to finance its retained losses in a formal structure. The term “captive” comes from the fact that the policyholder owns the insurance company, i.e., the insurer is captive to the policyholder.
Captive Benefits:
- Cost reductions in insurance premiums
- Cash flow benefits by controlling investments to which excess premiums are applied
- Intergenerational wealth and business transfer function
- Access to the reinsurance market and a wider array of insurance products at more effective costs
- Insure risks and access coverage that is typically unavailable or difficult to obtain because of historic loss in a sector or industry
Industry Candidates:
- Real estate development
- Construction
- Engineering
- Manufacturing
- Automobile dealerships
- Distribution
- Hospitality/restaurants
- Healthcare
- Truck and motor freight
- Finance
Captive Insurance companies are complex structures that require specialized expertise. QLife provides that guidance, assisting advisors in evaluating the financial and life insurance solutions that support a Captive Insurance company.
With QLife as your partner, you are poised to stay current and competitive in this important emerging market.