May 22, 2024

Business Bib

Business & Finance Blog

Captive Insurance Coverage Empowers Consumers

2 min read

Many consumers have gripes about the insurance industry as it is constituted today. They have seen over time that various insurance providers may not have their best interests at heart. While insurance companies claim to look out for their customers, they have incentives not to pay out claims. More than that, they make a profit off of consumers, making it difficult for those people to get full value. With these problems in mind, the world of captive insurance has risen to provide consumers with a second option. Many are finding that this new option is a better one for their needs.

The captive insurance industry is built on a simple premise. It’s built on the idea that insurance companies should be in the business of serving the needs of insured people. The only way to ensure that this happens is to have the insureds actually own a piece of the business. This is where captive services come into play. Insured people actually own the company that insures them. People buy in, and in essence, they become their own insurance provider. There is a pool that allows all insureds to share risk, but they don’t have to worry about an insurance company pulling profit out of the mix.

More consumers are coming around to the captive insurance plan because it allows them to get better rates. In a typical insurance setting, the insurance company is going to price its profit into premiums. People pay more than they should for insurance so some other shareholders can make money. In the captive insurance business, the insureds are also the owners. Any profits the insurance company is allowed it make will come back to those insureds in the form of dividends. It’s a way of investing doubly in one’s own future.

Whenever industries fail to provide for the needs of their consumers, there are always companies willing to provide a different model. That’s what the captive insurance phenomenon is all about. It’s about doing things a bit differently so the people who need insurance most can get it in a way that makes financial sense. More and more consumers are coming around to this way of thinking, buying in to captive insurance services so they can save money and rest easier in the knowledge that any future claim will be paid without trouble.