CAPTIVES FOR THE MIDDLE MARKET

Many middle market companies can greatly benefit from a captive or other alternative risk transfer structure. Businesses of all types can use a captive.

 

BUSINESSES SUITABLE FOR CAPTIVES

Captive insurance companies are appropriate for all types of businesses, including:

  •  Construction
  •  Distribution
  •  Energy
  •  Engineering
  •  Aviation
  • Creditors/Finance
  • Franchising
  • General Contracting
  • Healthcare
  • Aerospace
  • ​Hospitality
  • Manufacturing
  • Professional Services
  • Real Estate Development
  • Truck and Motor Freight
  • Restaurants
  • Retail
  • Transportation
  • Cannabis
  • Assisted Living

CHOICE OF OWNERSHIP

 

 
Captive ownership is quite flexible. In many cases the captive has the same or similar ownership as the business. For group captives, some or all of the group members can own the captive.
 
A captive can be owned by multiple parties, including LLCs, partnerships, corporations, trusts, key employees and individuals.
 
For business owners focused on succession planning, a captive can provide substantial opportunities
 
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TYPE OF CAPTIVES

*Informational purposes only

 

Single-Parent Captive

Insures the risks of related companies. The most common form of captive.

 

 

Group / Association Captive

Insures the risks of companies in an industry group, franchise, or association. A group captive can share the risk among several participants and spreadthe fixed cost of the captive among many members.

 

Agency Captive

Formed by insurance brokers to allow them to participate in high-quality risks which they control.

 

Protected Cell Captive

A protected cell captive (PCC) enables users to legally segregate assets and liabilities within a separate vehicle, or cell. This allows many cells to be created within the same captive.

 

 

Risk Retention Group

A group self-insurance plan or group captive operating under
the Liability Risk Retention Act
of 1986. A Risk Retention Group (RRG) can cover the liability exposures, other than workers’ compensation, of its owners. Once licensed ina state it can operate
in any other state. RRGs are often used to insure medical malpractice risks, and avoid the need of a fronting insurance company.
 
 
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Key Domicile Considerations
  • Capital and Surplus Requirements
  • Investment Limitations
  • Regulatory Restrictions
  • Government Fees and Taxes
  • Infrastructure

   

As part of your captive analysis study, ReInsurance Specialties will analyze and
help determine the appropriate domicile for your captive.

CHOICE OF DOMICILE

With the strong growth of the captive market, many domestic and foreign jurisdictions have approved captive insurance legislation.
In the early years, foreign jurisdictions such as Bermuda and the Cayman Islands were industry leaders. A few years later, several states in the U.S. passed captive insurance legislation.
 
Today, most states have captive laws in place. There are now many domiciles from which to choose, both domestically and internationally.
In deciding on the best location for your captive, the major issue is whether to locate onshore or offshore. Other domicile differences should also be considered.

CONTACT

REINSURANCE SPECIALTIES

OUR ADDRESS

4334 NW Expressway, OKC, OK 73122

Email: info@resinsurancespecialties.com
Tel:  405.880.1949

 

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