Captive insurance, also known as a "self-insured plan" is a type of insurance that allows for employers to have more control over their own insurance premiums.
Captive programs enable employers to combine employees claims experience with other like-minded businesses to control medical insurance costs. Unlike a traditional insurance plan, the goal of a captive is to reduce the risk of its member companies while providing flexible, high-quality insurance coverage.
Traditional insurance
With traditional insurance, risk is passed on from an organization to an insurance provider that charges a premium and requires a deductible. The insureds are responsible to pay premiums monthly in addition to co-payments, which are a fixed payment when visiting a doctor. if an employer offers the insurance, they may pay a portion of the premium.
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