Private Insurance is an Innovative, Improved CAPTIVE…ALTERNATIVE
Developing a corporate risk financing strategy is a critical planning move. When you have the confidence that your risks are managed and controlled, you can grow faster, protect your assets and your employees, build value more quickly and execute a more robust exit strategy.
Captive Alternatives has re-invented the concept of “captive insurance” and is proud to introduce Private Insurance. We are bringing Fortune 500 Risk Management solutions to small companies, helping them leverage assets to protect and nurture their companies.
A private insurance strategy protects against financial losses by funding for unpredictable risks specific to a business owner and their affiliated companies. These risks are typically those that have a relatively low probability of occurring but could be financially devastating to a business (such as a cyber breach, regulatory change or loss of key customer or supplier). A private insurance strategy provides a means of clearly identifying these, often hidden, risks and developing a tax efficient ﬁnancing plan in the event they transpire.
In addition to funding unpredictable losses, participating in a private insurance structure may enable a business owner to accumulate equity, generate underwriting profit and increase transparency and control over their risk management efforts. As insurance reserves build, business owners can further support their Enterprise Risk Management objectives. Most business owners understand the major risks they face, and they know how to manage these risks to minimize the likelihood of claims. By shifting certain lines of insurance coverage into a private insurance structure, business owners stand to proﬁt from a low claims experience but can rest assured knowing potentially catastrophic risks are funded.
A private insurance structure creates a proﬁt center out of an ordinary business expense: the cost of insurance. Fortune 500 and other large companies have used alternative risk financing vehicles for many years to improve cash flow, receive certain tax advantages and create signiﬁcant equity. For smaller business owners the private insurance structure is a rewarding alternative to simply “buying insurance”. Regardless of your company’s size, Captive Alternatives can help you set up a fully compliant Private Insurance structure to develop a top tier risk management program, reduce your risk, and build equity to protect your business.