Alternative Risk Solutions

Alternative Risk Solutions

The story has been told…………. In the 50’s the term “Captive” came into practice for a mining company, of all things.

A mine producing solely for the corporation’s own use was referred to as a “Captive” mine.  Ultimately when the mining company incorporated its own insurance company, it was referred to as “Captive” insurance since it wrote insurance exclusively for the Captive mine.

Today a “Captive” insurance company is effectively an “in house” insurance provider formed primarily to insure its owner affiliated companies.  Captives can operate as either insurance or reinsurance companies and as such issue

• Insurance policies and reinsurance treaties
• Bill and collect premium
• Collateralize clients

Captives have no employees as most “Insurance Company” functions are outsourced.  ERMIS has several captive alternatives to choose from, including a single cell property/casualty captive, a group workers’ compensation captive, a single cell workers’ compensation captive and an ERISA based employee benefit captive.

With access to the full site, you can see the following information and more…

What, Why, and How	Advantages & Disadvantages, Choices and Management	Getting started and Longevity
What is a captive?  Is a captive a legitimate insurance company?  Why would you set up a captive?Why do owners and companies consider creating a captive to manage their risks? How do you know if a captive is right for your organization?	Some advantages and disadvantages of owning a captive.Three types of captive.Is there a good time to set up? If I did it myself what would it cost to set up and manage? Who manages it?	Set up your captive in Nevada … Why?A captive can operate as an insurer and a reinsurer for each member.Typical examples of captive structure. What exit strategies are available?