INTRODUCTION TO THE GUIDE
A captive insurance company is an entity formed specifically to manage the risks of its parent company. These “single parent captives” have long been used by Fortune 500 companies to manage their diverse risk portfolios.
With the development of several captive company variations, the many benefits of captives are now accessible to middle market firms.
This guide explains the mechanics and benefits of one of the fastest growing types of captives: Member-Owned Group Captive Insurance. As its name suggests, group captives bring together a group of businesses to form an insurance company that manages only their risks. This guide will assist business owners in determining if their business is a good fit for this approach to risk management.