“That makes perfect sense. I still don't understand.” This brief exchange with a real client neatly sums up captive exploration: simple in concept, complex in practice. Forming a captive means that your business will own an insurance company, pay for its own losses, and pocket any profit. The “what” makes sense. The “how” is more tricky.

In the insurance industry, the term "Paper" is often used to describe both the insurance policy itself and the carrier underwriting that policy.

In simple terms, reinsurance is insurance for your insurance. Whether you operate a captive or pay a premium for traditional insurance, reinsurance is likely part of the equation.

Captive insurance empowers companies to craft their own strategic insurance solutions, potentially saving money and gaining greater control of their risk. This guide provides the roadmap to navigate this powerful tool. It will walk you through the basics, ensuring a solid grounding in the concept and practice of captive insurance.