Ownership & Control | Part 1

Last week we launched our new three-part series on Ownership & Control.?

Today we will focus on ownership options. First, let's build a foundation. Within the world of captives, there are only two primary structures. It's a single parent captive or a group captive. Most of the time, single-parent captives are direct writers. However, some single-parent captives can also be reinsurance captives, which means they are re-ensuring a commercial carrier's policy.?

Group captives, on the other hand, are generally always reinsurance captives. But sometimes, they can be a direct writer. So you could have both reinsurance and direct writer structure within single parent and group captives.?

Now let's dive into ownership. A single-parent captive translates to one owner, and that one owner is generally the insured business that receives it from the single-parent captive. The group captive breaks down into two subcategories, a mutual (owned by third parties or members of the group captive). Then there's a producer-owned group captive (generally owned by an independent entity), or it could even be an insurance company that wants to get involved with captive insurance—the pneumonic for a producer-owned reinsurance captive a PORC.?

With this background information, watch Thursday's video HERE for how everything is broken down.?