[R105a]

rent-a-captive

Companies may not want to incur the expense, time and effort necessary to establish their own captive insurers. With a rent-a-captive, a business rents space within a larger captive that provides access to the license, surplus, management and other services of the captive for a fee that may be much less than it would cost for the business to begin its own captive insurer. The captive may also have access to quality reinsurers and other expertise that the business does not.