Captives 101

Captive insurance is simply another word for self-insurance. As an industry professional, you know some employers are hesitant to shift to alternative funding strategies. Whether an employer is risk-averse or they feel they “aren’t large enough” for captive self-funding, Roundstone recognizes changing their mindset can be difficult. See how we outline the ins and outs of captive insurance.

History of Captives

Captive insurance got its start more than 500 years ago when British and Italian ship owners began sharing risks. Captives have always offered a non-traditional approach to insuring risk for companies looking for affordable coverage. Presently, there are more than 30 states that register and regulate captives, with Vermont being the largest domicile.

How do captives work today?

A captive is an insurance company that becomes a subsidiary of the employer. It’s licensed by the state in which it operates, which means it’s treated by the government the same as any other insurance company. Your client will need to adhere to certain regulations, but our worry-free captive management ensures all state and federal requirements are met.

Owning a captive offers employers many advantages like:

  • Introducing a defined framework for risk management
  • Designing a plan without the restrictions of off-the-shelf traditional insurance
  • Influencing insurance operations, like claims handling and reporting
  • Profiting from better plan performance

Looking for success stories to share with your clients? Roundstone has you covered. Our Blog features client success stories and the latest news from captive industry experts.

Connect with us to learn more about our captive programs. Contact Us.