THe Captive Model

 Captive insurance is a strategy that allows a business to form its own licensed insurance company to cover specific risks, rather than relying entirely on traditional commercial carriers. This model gives companies greater control over their insurance program, including how premiums are used, how claims are handled, and how risk is managed over time. By retaining underwriting profits and customizing coverage, businesses can reduce costs, improve risk transparency, and create a more stable and predictable insurance structure. Captives are typically structured to insure the parent company and may also cover related entities, with flexibility in policy design and investment of reserves. At Rhodium, we bring decades of experience in developing and managing captive insurance programs that align with each client’s unique operations, goals, and risk profile, helping them turn insurance from a recurring expense into a strategic asset.