A Captive is a special purpose insurance vehicle, that can provide unique coverage not available in the commercial insurance markets. An MGA with its own Captive vehicle, can give the MGA the ability to retain profitable risk, better negotiate in the reinsurance market, and design and control an insurance program tailored to its specific needs.
Learning Objectives
(a) What a ‘Captive’ is and how it works;
(b) Types of Captives;
(c) The advantages and disadvantages of a Captive to an MGA.
