In today’s volatile insurance market, businesses are facing increasing challenges—rising premiums, restrictive policy terms, and limited control over claims handling. For companies looking to take control of their risk management strategy, captive insurance presents a powerful alternative.

 

What Is Captive Insurance?

Captive insurance is a form of self-insurance where a business (or group of businesses) creates its own insurance company to cover its risks. Instead of paying premiums to traditional insurers—where underwriting profits are kept by the carrier—companies that use captives retain underwriting profits, gain greater claims control, and achieve long-term cost savings.

Why Consider a Captive?

Many successful businesses are turning to captives because they offer distinct advantages over conventional insurance, including:

• Premium Stability: By avoiding the unpredictability of the commercial market, captives provide greater financial certainty.
• Cash Flow & Profitability: Policyholders retain underwriting profits and investment income that would otherwise go to an external insurer.
• Coverage Customization: Captives can be tailored to meet the specific risk needs of a business or industry.
• Enhanced Claims Control: With a captive, companies gain direct oversight over claims management, reducing delays and unnecessary payouts.

Who Should Consider a Captive?

Captive insurance isn’t just for Fortune 500 companies. Businesses with at least $350K in annual insurance premiums or $10 million+ in revenue can benefit from a captive strategy. Industries that commonly leverage captives include:

• Construction & Real Estate
• Transportation & Logistics
• Manufacturing & Wholesale Distribution
• Healthcare & Professional Services

The Union Risk Advantage

At Union Risk Services, we specialize in designing and managing captives that maximize savings while maintaining strong risk management practices. With over $65 million in captive premium under management, we work with businesses of all sizes—helping them transition from being price takers in the traditional market to proactive risk managers in the captive space.

If you’re tired of escalating insurance costs and want to explore a strategic, long-term risk solution, let’s connect. A captive could be the key to transforming your company’s insurance program into a competitive advantage.

Ready to take control of your insurance? Contact us today to explore how a captive could work for you.

Union Risk Services | Captive Insurance Specialists

Stay safe and prosperous!