SELF INSURANCE
AND
CAPTIVES
PROPERTY & CASUALTY
The growth of self-insurance for property and casualty coverage has moved beyond the major corporations and is now being utilized by small public and private entities, both profit and non-profit. These entities, while not large enough to self-insurance on their own, have found that by grouping together with similar or related entities, they too can enjoy the benefits of self-insurance as a captive. (Some states also permit pooling of non-similar or heterogeneous groups.
ADVANTAGES:
Greater cost control through claims management and loss prevention;
Lower fixed costs than conventional insurance plans;
Investment income;
Share in underwriting profits;
Improved coverage's and limits;
Access to excess and reinsurance markets.