Understanding Captive Insurance

Captive insurance is one of the most effective strategies for businesses looking to take control of their risk management and reduce long-term insurance costs. This video provides a clear, visual walkthrough of how member-owned group captive programs work — and why they've become a preferred tool for companies with strong safety cultures and favorable loss histories.

What You'll Learn

• What captive insurance is — and how it differs from traditional commercial coverage
• How group captives work — the structure, ownership model, and shared risk pool
• Why companies choose captives — premium retention, cost stability, and greater control
• Who captives are right for — the profile of a good captive candidate

Why It Matters

In a traditional insurance arrangement, every dollar of premium you pay belongs to the carrier. If your loss experience is better than expected, the carrier keeps the profit. A captive flips that model — allowing you to retain underwriting profit, stabilize your costs over time, and invest in the risk management programs that keep losses low.

For construction companies, renewable energy developers, and EPCs with $250K+ in annual premium, captive programs can deliver meaningful savings — often 20–50% over a five-year period compared to the traditional market.

Want to explore whether a captive makes sense for your business? Start your CORE360® Risk Review for a no-obligation assessment.