The Problem
As the global insurance market continues to harden, organizations are increasingly facing multiple challenges:
Limited Coverages
Coverage options for new policies are more limited, and insurers are reducing or eliminating certain coverages on renewal.
Denied Claims
Insurers are increasingly denying claims. Business interruption claims due to COVID-19 are an example.
Solution
The Solution
An online insurance marketplace where groups and associations can easily and cost effectively setup their own captive insurance company to provide customized coverages to their members while participating in the profitability of the underlying insurance program.
Broader Coverage
A captive may be able to provide coverages where the conventional market is unwilling or unable to for certain risks.
Lower Premiums
With a good loss ratio, the captive has the potential to reduce or at least stabilize the price of coverage.
Customized Coverages
A captive has complete freedom to insure any risk it chooses and to customize the terms and conditions of its policies.
Improved Claims Handling
A captive is also able to establish its own claims handling policies and procedures.
About
Find Out More About Us
Captive8 was created out of the need to reduce the cost and complexity of captive insurance for small to medium sized organizations.
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Who We Are
We specialize in the setup of captive insurance companies for associations and groups. "Association" or "group" captives are insurance companies that are owned and managed by multiple non-related organizations. Among other things, they offer the opportunity for members of a group or association to participate in the profitability of their own insurance program.
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Vision
To give small and medium sized businesses the opportunity to participate in the profitability of their own insurance programs while simultaneously having more control over claims and underwriting.
F.A.Q
Frequently Asked Questions
These FAQs address some of the most common questions about our platform.
- What is a captive?
A Captive insurance company (“Captive”) is a specialized private insurer that is usually setup to provide coverage for a specific risk. Captives accept premiums that would normally have been paid to a regular insurer. If the claims paid are less than the premium collected, the captive makes a profit, just as a regular insurance company would. The difference is that the Captive owner benefits, not the regular insurer.
- Are captives used by many organizations?
Captives make up 2% to 3% of the commercial insurance market and have been growing steadily in popularity since the 1960’s when the first captives were being formed in Bermuda. Today, Captives are a fixture among Fortune 1000 companies. Many smaller companies and even groups of individuals also use Captives. Competition has driven down captive formation and operational costs to the point where Captives have become a realistic option for even relatively small organizations.
- What are group and association captives?
Association Captives are setup to insure the risks of its members. An example of such an association could be a condominium homeowners association, whose members are the Stratas. Group Captives are like Association Captives and are made up of a collection of like-minded organizations that band together to form an insurance facility that retains some risk but spreads the risk of unanticipated losses among each other, thereby diminishing the impact of a bad loss year for one or more of its members.
- I'm a small business owner, can I setup a captive on your platform?
Individual businesses can't setup their own captive on our plaform, but the groups or associations that represent them can.
- Why should my company join a group or association captive?
The insurance marketplace commonly goes through its “hard” and “soft” cycles where premium fluctuations have little relation to individual loss experience. These swings can be avoided by joining with other like-minded, successful companies to create your own group or association captive insurance company, making your costs more predictable and stable. In this way, you can lower your costs and earn investment income — both benefits you won’t receive from a traditional insurance company.
- I'm an industry association, how do I get started?
Simply contact us and we'll go through the process of setting up a captive on our platform to provide insurance coverage to your members.