Captive insurance, also known as a "self-insured plan" is a type of insurance that allows for employers to have more control over their own insurance premiums.

Captive programs enable employers to combine employees claims experience with other like-minded businesses to control medical insurance costs. Unlike a traditional insurance plan, the goal of a captive is to reduce the risk of its member companies while providing flexible, high-quality insurance coverage.

|

Traditional insurance

With traditional insurance, risk is passed on from an organization to an insurance provider that charges a premium and requires a deductible. The insureds are responsible to pay premiums monthly in addition to co-payments, which are a fixed payment when visiting a doctor. if an employer offers the insurance, they may pay a portion of the premium.

Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.

Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.