The generalized singularity of this insurance product could be misleading to the uninitiated. Captive insurance industry goods and services need to be explained quite authoritatively and extensively in order for the business handler to come to grips with it and help decide whether this alternative to conventional insurance practices makes good business sense and, more importantly, is suitable for the business concern or environment in question.
For the time being, this short article provides a brief and basic introduction to interested readers on the concept of captive insurance and all its related products and services. You could very well find that your local insurance agent will be as non-plussed as you were when you first came across the concept. Indeed, at least as a licensed service provider, the insurance agent will be aware of captive insurance but his knowledge, understanding, appreciation and interpretation thereof could be vague and quite sketchy at best.
It just isn’t his field, and indeed, conventional insurance companies will not be providing you with this product. Captive insurance companies are specialized organizations. A brief glimpse at its staff organograms will show you that in terms of stakeholder involvement, more than just agents, insurance clerks and underwriters are involved in this business. The collective sum of its parts includes the legal fraternity as well as the building construction trade.
Professional risk management consultants as well as financial advisors all have important roles to play. The captive insurance concept embraces the empowering notion of being far less reliant on conventional insurance companies and enjoying both independence and fairness when the time arrives to compensate the business in times of loss or damage. You and your insurance premiums are no longer responsible for the claims that other companies make.