Considering a Captive to Leave the Commercial Insurance Rat Race

By Joel Geddes III

A captive will provide a long-term financial approach to someone willing to consider taking risk. In the short-term, use of a captive may be a more expensive option than purchasing coverage through a commercial insurer. In fact when a commercial insurer knows they are quoting against a captive the cost of its commercial insurance program can miraculously decrease. Captives on the other hand are less likely to engage in a price competition while offering long-term customized business solutions and exclusive risk financing.

Price competition is one of the factors that drive insurance market cycles...