What advantage do captive insurers often provide to their owners?

Captive insurers offer significant advantages to their owners, primarily through cost savings and specialized services. By forming a captive insurance company, businesses can manage their own risks and insurance needs more effectively. This structure often leads to lower premium costs compared to traditional insurance markets, as captives allow companies to retain more of their risk and tailor their coverage to specific needs.

Moreover, captives can provide access to specialized insurance solutions that might not be available in the standard market. This can include coverage for unique or high-risk scenarios relevant to the business's operations. Overall, the ability to manage costs and customize services makes captives an attractive option for many businesses looking to control their insurance expenses and address their specific risk management needs effectively.