Individual Account Captives are designed for sophisticated accounts that desire to assume premium and losses on a quota share basis. These are segregated portfolio companies or segregated cells established for individual accounts who want to share in the insurance transaction. Typically, individual account captives are designed for accounts generating large annual premiums with an appetite to share in the overall cost of workers' compensation insurance. These programs allow the individual account to participate on a quota share basis in the premiums and losses for policies issued to the account.
Reduce Workers' Compensation Costs
Many companies can significantly reduce their workers' compensation costs and better control their risks by forming a captive.
Captives can often provide lower net costs as the captive owner receives both the underwriting profit and the investment income on his policy. Premiums paid by the company to its captive may be tax deductible. Captives are also an excellent option for companies finding it difficult or unduly expensive to buy workers’ compensation coverage from commercial carriers.
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