Control
• Design of more effective claims handling, loss control and risk management programs
Capture insurance related profits
• Underwriting profits and investment income accure to owners
Access to reinsurance market
- Wholesale pricing versus retail pricing charged by insurance companies
- Capture ceding commission paid by captive to reinsurer.
Reduced insurance costs
- Lower acquistion cost and premiums
- Accumulation of investment income to help reduce new loss costs
Coverege of risks
- Not availabale in the commercial market
- Not available at a realistic premium
Capacity
- Cannot get all limits required in the commercial market
- Captive can be structured to provide desired capacity at necessary levels