Self-insuring with a single-parent captive
Journal Article
·
· Electric Perspectives; (United States)
OSTI ID:6635797
As the electric utility industry strives to meet the growing challenge of competition by improving service while simultaneously lowering costs, traditional insurance programs are receiving increasing scrutiny. In some instances, utilities are discovering that they can better manage certain financial risks by forming a single-parent captive insurance company. Used extensively by Fortune 1000 companies and a growing number of medium-sized businesses with revenues ranging from $100-300 million, a single-parent captive insurance company is a wholly owned subsidiary whose primary function is insuring selected exposures of the parent organization and sister subsidiaries. Captives can provide coverage both directly, by issuing policies to the parent and affiliates, and indirectly, by reinsuring licensed insurers. (Certain coverges, such as workers compensation and automobile liability, which are state-regulated, must be procured form licensed insurers.) Captives are usually established in jurisdictions with special enabling legislation. Often, this is a location other than the parent's headquarters. Today, captives can be domiciled in Vermont, Colorado, Hawaii, Delaware, and Tennessee, as well as offshore locations such as Bermuda and Cayman Islands.
- OSTI ID:
- 6635797
- Journal Information:
- Electric Perspectives; (United States), Journal Name: Electric Perspectives; (United States) Vol. 16:6; ISSN 0364-474X; ISSN ELPED9
- Country of Publication:
- United States
- Language:
- English
Similar Records
Captive insurance companies and the management of environmental risks
Evaluating the use of captive insurance as a financial assurance mechanism under RCRA
NEL-PIA: insurance for the nuclear industry. [Nuclear Energy Liability-Property Insurance Association]
Journal Article
·
Tue Jul 01 00:00:00 EDT 1986
· J. Air Pollut. Control Assoc.; (United States)
·
OSTI ID:7119823
Evaluating the use of captive insurance as a financial assurance mechanism under RCRA
Conference
·
Fri Dec 30 23:00:00 EST 1994
·
OSTI ID:49392
NEL-PIA: insurance for the nuclear industry. [Nuclear Energy Liability-Property Insurance Association]
Book
·
Wed Dec 31 23:00:00 EST 1975
·
OSTI ID:7269648