As corporate structure continues to evolve, insurance needs will continue to change. This presents an opportunity of assuming greater insurance risk by self-insuring professional liability, workers’ compensation, and other lines of coverage. It is clear that the benefits achieved by utilizing these alternatives can be significant. However, there are hidden pitfalls. The stability and control of risk are the foremost concern in any self-insured program. Broker involvement is imperative to the program’s ultimate success.

Self Insured Retention Programs, including but not limited to Captive Insurance Formations, have a wide array of benefits:

• Lower net cost through reduced transaction costs and access to investment income
• Stable premiums
• Control of the claims process
• Exposure limited by the use of aggregates