Many businesses are integrating the Internet with machinery, a concept known as The Internet of Things, which is simultaneously making businesses more efficient and creating new risks. In addition to traditional risk exposures such as equipment breakdown and regulatory changes, cyber risk is fast-becoming a major concern in manufacturing as the Internet of Things continues to gain popularity. Forming a captive insurance company can help mitigate risks and thwart financial losses in the event of a cyber hack, or other peril. Essentially, comprehensive captive coverages can help business owners fill gaps in insurance that commercial policies may leave behind.
The Beginner’s Guide to Captive Insurance | Launchways
Did you know that there were over , insurance providers in the USA in ? Insurance is a lucrative market. Providers have a captive audience who are concerned about the impact of local and world conditions on their assets. The more the assets, the higher the level of risk and responsibility for owners. Have you considered a captive insurance program?
Issue: In its simplest form, a captive is a wholly owned subsidiary created to provide insurance to its non-insurance parent company or companies. Captives are essentially a form of self-insurance whereby the insurer is owned wholly by the insured. They are typically established to meet the unique risk-management needs of the owners or members.
What is Captive Insurance? Home What is Captive Insurance? A Captive Insurance Company is an insurance company that primarily insures the risks of businesses which are related to it through common ownership. For example, the owner or a group of businesses can form a wholly owned Captive Insurance Company for the purpose of insuring his related companies. The insured businesses pay premiums to the Captive in exchange for insurance.