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Learn the Basics of Captive Insurance. Then Work Towards Maximizing the Benefits.

The business owners, wealthy investors and corporations with a Captive Insurance strategy in place generally wish they had implemented one sooner. However, for all the associated benefits, most people are simply unaware this strategy exists.

So, What Is Captive Insurance?
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Think of Captive Insurance like creating your own Insurance company, specifically for your business or family. It's generally not meant to replace traditional insurance policies entirely, but rather works effectively in combination with them. Instead of only buying coverage from a traditional provider, you create and use a Captive to directly target specific risks.

What Are Some Benefits of Captive Insurance?

Instead of paying monthly premiums to an insurer, you put the same money towards funding your own policy. Unused premiums can be saved or distributed in the form of dividends.

Premiums paid to traditional insurers don’t just fund your policy — they also pay for your insurer’s overhead expenses. Captive Insurance is also tailored to your specific risks and liabilities, so you’re not overpaying for unnecessary coverage.

You have the freedom to prioritize coverage and safety protocols for certain areas. For instance, financial institutions might want to focus on cybersecurity. Proactive risk management in this area will theoretically result in fewer claims — and greater savings.

Instead of paying monthly premiums to an insurer, you put the same money towards funding your own policy. Unused premiums can be saved or distributed in the form of dividends.

Premiums paid to traditional insurers don’t just fund your policy — they also pay for your insurer’s overhead expenses. Captive Insurance is also tailored to your specific risks and liabilities, so you’re not overpaying for unnecessary coverage.

You have the freedom to prioritize coverage and safety protocols for certain areas. For instance, financial institutions might want to focus on cybersecurity. Proactive risk management in this area will theoretically result in fewer claims — and greater savings.

Visualizing How Captive Insurance Works

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When Captive Insurance Might Make Sense

Do you pay high premiums but rarely file claims?

Are you concerned about fluctuating insurance costs?

Do you want to retain control over your risk management strategy?

Do you generate a minimum of $20 Million in revenue?

If you answered “Yes.” twice or more, then it would be sensible to talk to experts in this field.

Talk to Us
Insurance products are offered through nonbank insurance agency affiliates of Wells Fargo & Company and are underwritten by unaffiliated insurance companies.

Reinsurance Rounds Things Out

If you take on more risk than you’re comfortable handling, Reinsurance might be a plausible solution. This covers unexpected, rare, or catastrophic events that exceed what’s contained within your Captive (for an associated fee).

This means Reinsurance can:

  • Help provide stability in the face of one significant claim
  • Help protect Captive reserves
  • Help provide a safety net in case your Captive insures new risks or expands coverage

Talk to Our Reinsurance Team