Rent-A-Captives from Caitlin Morgan
Businesses turning to captives are looking for a formal, flexible and controllable risk-retention framework. They want the benefits of sharing in the profits of favorable underwriting performance, generating investment income, funding consistent deductibles across all locations, maintaining stability of pricing and/or obtaining broader coverage. Some establish their own companies while others choose to a Rent-A-Captive.
Owned by an outside organization and open to participants for a fee, members “rent” licenses and capital from the Rent-A-Captive owner. A Rent-A-Captive allows organizations to obtain the benefits of a captive insurance company without the upfront costs, capital investment and significant maintenance cost associated with forming and managing an owned captive. In fact, often this type of captive is the first step towards the formation of a Single-Parent, Group or Association Captive as these can be formed over a period of time while the owners are developing the captive’s business through a Rent-A-Captive arrangement but without expending the same costs involved in setting up these other types of captives.
The Rent-A-Captive Option
The benefits of a Rent-A-Captive, in addition to the ease of setup and exit when compared with an owned captive, are the same as with all captives, including:
- Having greater control over one’s insurance program
- Minimizing total insurance costs over time
- Gaining long-term management of fixed costs
- Stabilizing premium and maintaining continuity of coverage terms and conditions
- Flexibility in design and structure of program
- Greater involvement in risk management program
- Sharing in underwriting profits and investment income
The professionals at Caitlin Morgan Insurance Services can help you evaluate whether a Rent-A-Captive is the right solution for our clients.
Who Benefits from a Rent-A-Captive?
- Associations and organizations with member premiums of $500,000 or more
- Traditionally insured, financially-sound corporations, associations and organizations
- Multi-state organizations inhibited by the self-insurance qualification process
- Self-insurance pools constrained by state regulations
- Self-insurers looking to reduce their after-tax cost of risk
We invite you to learn more about us and how we can help you expand your business.
Contact the experts at Caitlin-Morgan today and experience the benefits of working with a new kind of MGU and wholesale brokerage. For more information, call 317-575-4440 or complete the contact form on this page.