Captive Insurance
Captive insurance is an alternative risk financing structure where a business creates its own insurance company to cover risks that the traditional market prices inefficiently or won’t cover at all. Captives work for mid-to-large businesses with predictable loss histories, strong risk management cultures, and the financial capacity to retain risk. The structure can produce significant long-term cost savings and coverage flexibility, but it requires proper actuarial analysis, regulatory compliance, and ongoing management. We work with businesses evaluating whether a captive structure fits their risk profile and financial goals. Contact us to discuss.
Captive Advantages
ZRM’s Captive Capabilities
Is now the right time for you to start a captive?
Together we can strategically review regulatory measures, the necessary paperwork and administrative processes:
- Actuarial studies, feasibility and strategic reviews
- Financial reporting
- Fronting, reinsurance, and collateral negotiation
- General management services
- Loss analysis
- Regulatory compliance
- Risk management services
- Underwriting and technical insurance consulting
Ready to discuss your risk management? Contact ZRM Brokerage today.
When a captive makes sense
Captives work best for businesses with substantial annual premium spend, typically well into six figures, with five or more years of stable loss history, and a genuine risk management operation in place. At that scale, the traditional market’s pricing inefficiencies become large enough that self-insuring the predictable layer makes financial sense.
The most common captive structures we see are single-parent captives (one company insuring its own risks) and group captives (multiple companies pooling risk together for better pricing). Group captives work well for mid-market businesses that individually don’t have the premium volume for a single-parent structure but collectively have enough to negotiate better terms.
We help clients evaluate whether a captive is worth the setup cost and ongoing administration. Not every business that qualifies should form a captive. The tax advantages are real but the IRS scrutinizes captive arrangements, and the compliance requirements are ongoing. We bring in captive managers and actuaries to model the economics before any commitment.
