When we first heard about captive insurance, we were a little bit confused as to what was being offered. We did get the feeling that it was a very different way of engaging in the insurance business, but we were not sure as to what the advantages were for businesses. But now that we have spent some time learning about captive insurance, and we have spoken to businesses that use this insurance, we are aware of what you are getting when you invest your time and money in captive. And we can help you understand too.
The concept of captive insurance companies is that you have a set of businesses that are buying stake in a company – captive insurance. The reason why these companies are buying a stake in another business is because they are getting a massive advantage over traditional insurance. Captive insurance is the company that will offer insurance to these other businesses, but it is part owned by the same businesses. You may think that scream of conflict of interest – but it is the opposite. It is having the goals aligned, which helps both parties in a tremendous way. It is the ideal way to get business insurance.
What you are getting when you go with a regular insurance company is a lot of frustration. Yes, some are better than others. But they all have one goal – make money, no matter what. So a regular insurance company will have no issues throwing a client under the bus if it means they are going to see a boost in profits. Most of them are so big that losing a few clients means nothing, as there are ten more companies or individuals who will want their business. But when you put your money in captive, you are getting an insurance company that will have your best interests in mind!Comments Off on Understanding the Perks of Captive Insurance