It will not surprise you that insurance companies — like all businesses, really — do not prefer to take on 100 percent of risk if there is an effective way to lessen their exposure.
It may surprise you, however, to learn that organizations can simultaneously lower their risk and increase their profits by owning their own insurance company through a process called captive insurance.
Wait. That sounds kind of confusing, and it can be. Ten years ago, when Jeremy Colombik began explaining the concept, the nine-year MDRT member from Raleigh, North Carolina, received plenty of glassy-eyed stares. Now, he has a time-tested PowerPoint presentation, a two-minute video on his website (themsicorp.com) and a concise elevator explanation ready to go:
“This is just an insurance-company solution,” he said. “I’ve found a way for a business owner to get a lot of benefits from owning their own insurance company, and these are the five benefits.”
Learn more about this little-known, complex product in the Round the Table story “Captive insurance explained.”
Written by Matt Pais, MDRT Content Specialist
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