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Captive Insurers

In simple terms, a captive insurance company is an insurer that is completely owned by its insureds. As a licensed insurer, the captive insurer will analyze risk, underwrite rates, set premiums and return any unused funds either as profit or invest them to cover future claims. The main reason companies create captives is to avoid going to traditional fully-funded insurance companies which have prices which can go up unexpectedly.

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