"Captive Insurance" is the legal structure and colloquial term for a group of businesses who choose to insure themselves rather than go through a third party.
A select few busineses or groups of businesses create a licensed insurance company to insure themselves. Captives provide incredible flexibility to insure different types of businesses. These companies can be grouped by industry, common interest, or commitment to safety and excellence.
By creating their own insurance company, captive members can reduce their costs, insure difficult risks, and evaluate the risks of their peer members more precisely. More importantly, captive groups can vote on, communicate with, and evaluate new members, leading to opportunites to share risk intelligently and carefully.This leads to a more accurate risk assestment over time.
Perhaps the biggest value that a captive(premium membership club) provides is the opportunity to share safety knowledge, create relationships, and make improvements with peer business leaders. These so called "soft skills" can create immeasurable value to an organization mitigating costly accidents, empowering new ideas, and elevating workplace processes.
With captive insurance you are given more control to choose your member partners, collaborate on your claims, and share safety information, best practices, and ideas between member companies.
Pod captives allow their networks the chance to customize insurance coverages. This helps to get rid of excess policies and unnecessary costs while allowing previously "difficult risks" the opportunity to create stable insurance costs.