Having an attractive employee benefits option is more important than ever before. Attracting and retaining talent has become increasingly difficult and offering a quality benefits package can play a large role in the process.
In addition, you may want to protect your company from the risks associated with offering employee benefits. While employers have traditionally insured their employee benefits risks through an outside insurance carrier, the increased demand for employee benefits has resulted in an inflation of costs. Because of this, many employers have opted to cut out insurance carriers altogether and fund their group employee benefits risks with captives.
If you aren’t familiar with captives, let’s start with the basics. Captives are a form of self-insurance in which the insured owns the insurer. They are created and owned by at least one non-insurance company for the purpose of insuring the employee benefits risks of its owner. A captive can offer significant savings and become a substantial long-term investment. However, they may not provide the same benefits for every company, and the return on investment may be low.
R&R Insurance has extensive experience in the world of employee benefits. We welcome the opportunity to discuss the advantages and disadvantages of captives with your organization.Information provided by Zywave, Inc