Types of Captives

If you’re ready to change your approach to insurance and gain more transparency, control and cost savings, the next step is aligning your organization with the right type of funding strategy. The experts at Roundstone are here to explain which captive solution will provide the best value for your organization. In addition to Roundstone’s existing turnkey captive programs that are available today, the following captive funding strategies can be developed by Roundstone to fit your unique needs.

Captive Types:

Single-owner captive: AKA a “pure captive.” A single-owner captive insures only the risks of the owners or the owner’s subsidiary operations. Pure captives might be the right fit for your organization if you want to minimize your exposure to only your own company’s risk.

Group captive: Owned by multiple organizations, a group captive insures the risks of these homogenous or heterogenous owner entities. Group captives could be a great option for small to mid-size employers or associations who want to pool their risk. We have several established turnkey group captive programs available today.

Agency captive: Owned by one or more independent insurance agents to write business they control or wholesale. This option ensures the agent has skin-in-the-game for profitable underwritten business performance.

Risk retention group: An entity created under the federal Liability Risk Retention Act and licensed in any one state to write liability insurance. It is regulated as a captive insurance company and may operate nationwide, provided it properly registers with each state in which it proposes to solicit or write insurance. If this is the right fit for your company, we’ll help you match with other companies in your industry.

Rent-a-Captive: Owned by an insurance organization providing captive facilities to others for a fee. These types of captives are usually attractive to organizations who do not want to invest the time and money to form their own captive facility, but want the transparency and cost savings aspects of a captive funding strategy with a ready and available captive facility.

If you read this entire page we understand how complex captives may appear, Roundstone will help you sort through the legalese and tell you what you need to know, and if a captive is the right fit for your company.

Let’s start a conversation today, Contact Us.