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Single-parent captives have only one owner. Group captives, on the other hand, are formed when a group of individuals or entities comes together to jointly own a captive insurance company. Sometimes they are sponsored by industry associations for the benefit of their members, hence the alternative name " association captive."
A group captive is an insurance company owned and operated by captive members, strictly for the benefit of those members. It enables middle-market employers to increase their underwriting credibility through the benefits of collective purchasing power. Group captives are empowered with the control to select service providers, determine coverage ...
Challenges can arise when forming a group captive. Things like up-front capital, finding a front company for a long-term partnership, or the willingness to be transparent in operations and loss results all can act as barriers when establishing a group captive. What makes a Group Captive successful? A strong, robust loss control program is key ...
In this post, we’ll explore group and association captives, including what a typical structure may look like and what a company should consider before pursuing this type of program. Structure. Typically a group captive involves the members (i.e., Insureds) contributing capital towards the ownership and creation of the captive.
Group/Association Captives These are owned by multiple unrelated entities and are designed to insure the risks of the different entities. An association captive usually insures the risks of entities in the same or similar industries. Some group captives can also insure organisations other than the owners. Risk Retention Groups (RRGs)
Jan 7, 2019 · In our Captive Reinsurance Series, we’ve explored single-parent captives with a traditional fronting arrangement and the use of a captive in conjunction with a large deductible program. In this post, we’ll explore group and association captives, including what a typical structure may look like and what a company should consider before pursuing this type of program.
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What are Association and group captives?
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What is the difference between a single-parent and group captive?
A group/association captive is a licensed insurer or reinsurer that is formed and owned by an industry, trade, or heterogeneous group of employers, and is strictly for the benefit of its members. When a group is sponsored by an industry association, this is known as an association captive. BENEFITS OF ESTABLISHING A GROUP/ASSOCIATION CAPTIVE.
