Captives – pros and cons

It is estimated that more than 75% of Fortune 500 companies now operate their own captive insurance subsidiaries in addition to numerous smaller companies and enterprises that have followed the same route. Despite the soft insurance market and disappearing tax advantages, captive numbers have continued to expand. But, according to David Hertzell of solicitors Davis Arnold Cooper, the emphasis is now on captives as risk management tools providing part of the overall risk management solution.