Captive Insurance Programs -Captive 101

Captives - Why Own When You Can Rent?

One traditional drawback to renting a captive was the possibility that you could expose yourself to the adverse claims experience of another rental participant. Today, most captive domiciles have created protected cell legislation that provides for legal separation of accounts within the captive (see Segregated Account Companies Act 2000, in our glossary), making rental facilities a safe and attractive choice for middle market companies.

Benefits Of Renting

  • Lower costs
  • Turnkey set up
    • Consolidates costs
    • Dramatically reduces time investment
    • Shorter implementation

  • Lower capital requirements
  • Easy exit
  • Less financial disclosure
  • More control
  • Increased flexibility