What Are Captive Insurance Companies?

Next Video:
What Is an HSA Insurance?....5

Captive insurance companies are typically any company or group of companies that meet a few key concepts. Find out about captive insurance companies with help from a longtime insurance professional in this free video clip.

Part of the Video Series: Insurance FAQs
Promoted By Zergnet


Video Transcript

Hi, this is Tony Chimino. I'm the CEO of Assurance, explaining today what are captive insurance companies. A single company or group of companies may decide at some point in their history that they want to form their own insurance company. Now, this could be done for numerous reasons, but most people do it because they want to have more control of the adjudication of their losses. So, what they decide to do is form their own insurance company and they take on all or most of the risks themselves. Now, this can be done by a single employer or a group employers can kind of band together to form their own insurance company. Now, with any insurance company, they don't take on completely all the risks, they go out and buy things like a reinsurance, third party administrators and other people to help them manage this insurance company. The captive insurance are way for people to get very high level of control of their claim adjudication. This is Tony Chimino, explaining you just a little bit about captive insurance companies.


Related Searches

Is DIY in your DNA? Become part of our maker community.
Submit Your Work!