HomeContact UsMembers
Trax Insurance
Home
History and Mission
Structure and Responsibilities
Premiums and Criteria
Advantages and Benefits
Dividend Distribution
Financial Highlights
Service Providers
Contact Us
Members
 Captive Insurance Adantages VS Conventional Market  


  • The standard market incurs many expenses not related to individual clients, it is inefficient and the buyers have to pay for that inefficiency. Captive Companies have a lower operating cost ("expense ratio").
  • The standard market automatically retains investment income on what is essentially their policyholder's money. Captive owners hold their own loss funds and premiums on which they earn investment income.
  • The standard market is subject to insurance cycles, alternating between artificially low and excessive premiums, when the basic purpose of the industry is to stabilize costs. Captive owners fund their own predictable losses while reinsuring catastrophic exposures. Premiums can be stabilized through loss control.
  • The standard market selects only those classes of risk that conform to its "standards". Captive owners decide which risks are acceptable and evaluate prospective members.
  • The standard market avoids providing individual services on a fee basis. Captive owners decide which services will be purchased promoting cost effectiveness.
  • The standard market will not provide a long term deal to a corporation wherein the parties agree on the after-tax, after-investment cost to the insurer of providing its service plus a reasonable profit. Captive owners negotiate fees in advance for selected services and guide their own tax and investment programs.

 Potential Benefits  


  • Greater control of your insurance budget through premium stabilization and predictability. Reduction of insurance premiums through lower operating costs than a commercial insurance carrier.
  • Loss control efforts directly result in premium savings since each Captive owner primarily funds for their own predictable losses while sharing operating costs.
  • Better control of each owner's risk management destiny.
  • Each Captive owner becomes a Director of the Company allowing for maximum input into the insurance company's operation.
  • Greater control of claims adjudication. Owners have direct access to and notification from the person setting loss reserves, input into legal counsel, and the ability to designate claims that require special attention by the adjuster.
  • Investment income from each owner's distinct loss fund and potential profits accrue directly to that owner's bottom line.
  • Improved cash flow through reduction of operating costs and the disbursement of dollars from each owner's loss fund only after a loss is settled versus the time a loss is reserved.
  • Security and protection through the utilization of an "A" rated policy issuance company that is licensed in all states as well as the transfer of all catastrophic loss potentials to a "A" rated reinsurance company.

Care has been taken to provide accurate and up to date information on this website. However, we cannot guarantee the accuracy, availability or timeliness of this site, and we disclaim all representations and warranties as to this site. All information provided herein is subject to change without notice. The content of this site is provided solely for informational purposes and should not be relied upon or used for any other purpose. Nothing herein constitutes the offer of insurance or membership in our captive. Any such offer can only be made after detailed individual analysis by us and our service providers. We disclaim any and all knowledge of and responsibility for the content of any sites linked to herein and the content of any sites linking to this website.
Copyright TRAX Insurance Ltd. All rights reserved. Site design by MAGIA.