A Group Captive insures the collective risks of an industry group, franchise, trade association or class of business. It can share the risk among several participants and spread the fixed cost of the captive among its various members.
In a group captive several businesses in the same industry, association or franchise each pay insurance premiums to the carrier which reinsures to the Group Captive, pooling the premiums and losses. Generally, each group member is an owner in the captive. This allows insurance to be tailored precisely to the needs of the group and can provide substantial insurance savings.
Potential Benefits of Captive Ownership
Captives are a proven way for a company to customize their program to maximize its profit potential. Patriot captives are domiciled in the Cayman Islands, a British overseas territory and the fifth-largest banking center in the world.
Benefits of captive ownership include:
- Underwriting Profit
- Investment Income
- Reduced Operating Costs
- Increased Access to Coverage
- Coverage Stability
- Cost Stability
- Increased Control