The benefits come from ownership, and they fall into 2 main categories:
Financial
- Coverage built for you. Policies written to your actual risks, including gaps the commercial market excludes. When a cyber policy won't cover outages under 8 hours, your captive can.
- Better economics. Premium not paid out in claims stays as surplus and earns investment income. Over time, these mechanics bring down your total cost of risk and stabilize cash flow.
- Claims control. Claims handled by people accountable to you, on faster timelines, with control over how claims are resolved.
- Strategic position. You arrive at renewals with an alternative, add coverage as the business changes, and even generate new revenue by selling insurance to customers and partners
The common thread is compounding: each year of good performance improves next year's options.
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