Businesses are always subjected to a very complex and risky environment. That is why business owners are always on the lookout for solutions to efficiently manage and mitigate possible risks.
This premise was the main reason why business insurance was created in the first place. But business insurance alone encompasses a very broad scope of coverage. This may include coverage against losses, liabilities, among many others.
But one of the greatest mechanisms that this type of insurance made is the cell captive insurance. Not everyone is aware of this insurance mechanism, but its popularity is surging over the years thanks to insurance companies like Las Vegas’ Talisman Casualty.
What is Cell Captive Insurance?
A great way for a business or an organization to appropriately and efficiently manage risks is to have a cell captive insurance. Captive insurance is defined as the alternative to having self-insurance, in which a parent group or groups of companies or organizations go to a legal agreement to create a licensed insurance company. This created license insurance company will then provide coverage for itself or its members.
Basically, what this means is creating a captive enables businesses to underwrite their own insurance. In this scenario, they are given more control over their finances and risk-management. Furthermore, the need for third-party insurers which may charge high premiums may be eliminated here. Although captive insurance companies and facilitators are of course necessary.
Before, small-medium sized companies and enterprises are the traditional entities that subscribe to having cell captives. But nowadays, even multinational companies are using cell captives as part of their overall strategy to manage risks. So this is a great sign that this mechanism is efficient and can be seen to even grow in the coming years.
If casualty insurance is considered as a broad set of different kinds of insurance, captive insurance is just the same. Cell captive insurance includes several types that any business or organization can choose from. Any company may wish to pick a category of captive insurance that will fit the business model’s needs and books
Typically, a cell captive insurance company offers categories that will fall under single-owner captives, rent-a-captives, protected cell, and group captives. But this will depend on the domicile of the insurance company. If you want an insurance company that works as a regulated vehicle to transfer risks but still offers flexibility, choosing one from Nevada is a great choice. And a top choice for this is Talisman Casualty.
Talisman Casualty provides an excellent customer insurance needs in Las Vegas, Nevada. Talisman is basically a protected cell captive insurance company that offers protected cells to underwriters of businesses for better risk-management. If a company becomes a part of Talisman’s cell captive, the business will be offered access to regulated structures and even to international reinsurance markets. This will give the captive an advantage of potentially lowering costs and enhancing its insurance coverages.
Cell captive insurance companies, in general, are great alternatives to your traditional insurance companies. These traditional insurance companies are known to charge very high premium rates that may not seem so reasonable to business owners having smaller portfolios.
On top of that, there are actual benefits of choosing a cell captive insurance.
1. Enhanced control over costs and business risks.
When a company is self-insured through cell captives insurance, business owners have more control over both finances and risks.
2. Efficient claims management system.
Insurance companies like Talisman incorporate claim software into their cell captive insurance programs. The aim of this is to speed up the process while reducing costs.
3. Better overall insurance coverage.
Since companies have more control over their finances and risk-management, they are given better insurance coverage. On top of that, once a certain company becomes a cell captive, it is given access to wholesale and international reinsurance markets. Through this, an enhanced and more extensive coverage can be formed.
4. Reasonable bond amount.
The great thing about the cell captive is its flexibility while still following the insurance model. Basically, the amount of the bond will take into full consideration the risks and current business environment of the captive. Through this, a reasonable amount will be determined.
So overall, there is a great potential in cell captive insurance. Whether your business is a startup, small-medium, or a large corporation, perhaps this type of insurance will fit your business needs.