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ADVANTAGES OF CAPTIVES
Advantages to forming a Captive include:
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Lowering the cost of insurance
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Obtaining insurance not otherwise available
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Custom designing the type and level of coverage needed by the company
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Controlling the claims process, particularly in litigation with third-party insurance companies
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Benefitting from good claims experience and providing an incentive for improved risk management
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Having access to the reinsurance market where typical cost ratios are far less than conventional primary insurers and where a wider array of insurance products are available at more effective rates
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Having investment control over the captive’s assets (i.e. reserves and free surplus) which can then be retained in anticipation of future losses or to fund shareholder distributions
![Business Meeting](https://static.wixstatic.com/media/11062b_257bc93028ce4557822e1beb92106cbc~mv2.jpg/v1/crop/x_1417,y_0,w_3427,h_3333/fill/w_462,h_449,al_c,q_80,usm_0.66_1.00_0.01,enc_avif,quality_auto/Business%20Meeting.jpg)
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