Based on the existence of more than 7,000 operating captive insurance companies and more than three decades of mainstream market and regulatory acceptance, the captive insurance model can be considered, by nearly all measures, a well-accepted risk-management option in today’s market.
This was certainly not always the case. State and federal insurance regulators and tax authorities have scrutinized, analyzed and challenged from many angles the use of captives. In the end, the captive market is better for it. What stands in the market today are captive options that have been clarified and refined. The long-term value of a well-structured captive is now much more clear and predictable.