Few in the business world are familiar with the risk management benefits that can be obtained through the utilization of a captive insurance company.
Captive insurance companies give organizations the opportunity to take advantage of enhanced safety programs or obtain additional coverage for potentially disastrous events such as cyber attacks, product recalls, environmental claims, and wage and hour claims filed by employees. Some organizations have also implemented a captive as part of their strategy to address rising health care costs.
Often, when organizations implement a captive insurance strategy, they have a greater vested interest in their risk management function and focus more on loss prevention and minimalization.
In a recent Finance Monthly article, Alan Fine, Partner in Charge of Insurance Advisory Services and Captive Insurance Advisory Services, discusses these benefits of forming a captive insurance company and what he anticipates for the U.S. captive insurance industry in 2017.