The insurance industry is complex, with many types of policies and protections. Agency captives are a highly specialized type of coverage insuring unusual or expensive risks. Experts suggest exploring agency captive solutions to find the right choices.
The Basics of Agency Captives
With captives, companies create agencies to get self-insurance as a way to cover gaps and obtain full coverage for uncommon risks that are either too expensive to insure or for which coverage is unavailable.
Agency captives, however, guard the financial assets of insurance brokers and agents. They are particularly popular during a hard cycle for the insurance industry, which can happen if there are a number of natural disasters, for example, or sharp economic downturns.
Benefits of Agency Captives
Agency captives provide needed coverage at good rates—coverage that might not otherwise be available or might be extremely costly. There are also other important benefits.
- Customizable for an array of account sizes and needs
- Low historic loss ratio
- Specialized underwriting available for businesses with more and higher risks
You can reap the most benefits by seeking out experienced brokers and agencies that understand agency captives well.
Agency captives can increase financial efficiency and reduce operational expenses through low premium rates and less out-of-pocket risk. These types of policies give you freedom to relax, do business, and feel safe.