Captive Insurance is a type of cover that allows you more control over your insurance policies. By creating your own insurance company, also known as a ‘captive’, you’ll be offered stability in a market constantly changed by natural disasters, pandemics, inflation and other global events.
When you rely on traditional insurance options, your insurer has complete authority over the type of coverage you receive, how much you need to pay, and whether your claims are valid or not.
Captive Insurance, on the other hand, lets you create your own insurance company, or 'captive,' which gives you more authority over the risks you insure. Captive entities are valid entities that are used by various organizations, such as private, publicly listed, and non-profit organisations, both in Australia and around the world.
It is important to note that Captive Insurance should not be considered a complete solution to risk management. Businesses must have the resources available to set up an insurance company to provide cover for potential losses.
Additionally, Captive Insurance has a high barrier to entry, and it is generally recommended for companies with exemplary loss histories (and continued lower loss expectations) that have a premium size of at least $1 million.
Though Captive Insurance may be advantageous for risk management, it is not intended as a standalone resolution and frequently operates in conjunction with standard insurance alternatives. Nevertheless, the initial outlay needed to create a captive insurance firm is substantial, rendering it a resource most appropriate for businesses with a strong history of minimal losses and a premium magnitude of no less than $1 million.
Perth, the capital city of Western Australia, is the fourth-largest city in the country. While the capital acts as a hub for many successful businesses, mining and tourism are Perth’s most prominent industries, as proven by the city being rated the second-most attractive mining destination in the world.
Alongside having a bustling city culture, Perth is also renowned for its stunning natural landscapes. The capital is host to an array of picturesque sandy beaches, such as Cottesloe Beach with its turquoise waters and snowy white shores, and the iconic Scarborough Beach, also known as ‘Scabs’. The city’s other well-known destinations include the Kings Park and Botanic Garden, the Swan Bell Tower, and the scenic waterfront precinct Elizabeth Quay.
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Are you a Perth business looking for Captive Insurance? Speak to an award-winning Captive Insurance specialist today.