Types of Captives:
Single-parent captives, which underwrite only the risks of related group companies.

Diversified captives, which underwrite unrelated risks in addition to group business.

Association captives, which underwrite the risks of industry or trade association members (medical malpractice is a liability risk that is often insured this way).

Agency captives, formed by insurance brokers or agents to allow them to participate in the high-quality risks, which they control.

Rent-a-captives, in which companies have the benefits of a captive insurance company without certain costs, capitalization requirements or legal ramifications.


Employers need to answer these questions:
• Does our company culture support this effort from top to bottom?
• What is our critical mass?
• How strong is our risk management?
• Do we have strong loss control procedures?
• Who will we choose to manage our captive?
• Can we commit to this for the long term?