USA | Rising costs prompting some Baton Rouge businesses to create their own captives

Greater Baton Rouge Business Report | 11 Jul 2018

Practically every risk underwritten by commercial insurers also can be covered by captives, which are considered a form of self-insurance but operate like commercial insurance companies and are subject to state regulations including reporting, capital and reserve requirements, according to the National Association of Insurance Commissioners. Entities that form captives vary from multinational corporations—most Fortune 500 companies have captive subsidiaries—to nonprofits.