Captive insurance is an alternative to self-insurance in which a parent group or groups create a licensed insurance company to provide coverage for itself. The main purpose of doing so is to avoid using traditional commercial insurance companies, which have volatile pricing and may not meet the specific needs of the company. By creating their own insurance company, the parent company can reduce their costs, insure difficult risks, have direct access to reinsurance markets, and increase cash flow.When a company creates a captive they are indirectly able to evaluate the risks of subsidiaries, write policies, set premiums and ultimately either return unused funds in the form of profits, or invest them for future claim payouts. Captive insurance companies sometimes insure the risks of the group’s customers. This is an alternative form of risk management that is becoming a more practical and popular means. through which companies can protect themselves financially while having more control over how they are insured.
Aruba Captive Management Services (“ACMS”) with its main office located in Oranjestad, Aruba, is an independent captive services company that provides Captive Insurance management services. ACMS knows that each captive program is unique, and we will work closely with our clients to design the appropriate captive program, tailored to the needs of each client.
ACMS compares itself to only the top captive management companies in the market.