Group Captives 101

Simply put, a captive is an insurance company that is owned by the same entity it is insuring. A separate entity, of course, but the same owner. They've been around for years, and nearly 50% of major U.S. companies employ one or more captives.

A group captive takes the captive concept one step further, by pooling risk among several entities. The participants in a group captive share in its ownership, gaining advantages from economies of scale and a larger census to control costs, claims and losses.

Keep in mind, though, that a captive is an insurance company, structured to make a profit. So, in addition to minimizing risk, participants in a group captive also have the opportunity to realize underwriting and investment profits.

The exclusive group captive products of Clark & Lavey Benefits Solutions, Inc. are registered as a trademark under the name InCap.