The Wedge Group  10 of The Top Benefits and Risks of Forming A Captive 

Every risk financing alternative, with the possible exception of guaranteed cost insurance, has benefits and risks. The key to success, especially with captives, is to correctly compare the salient benefits with the riskiest drawbacks for each organization.

A risk manager must be prepared to make an informed decision regarding whether, and how, an organization should embark on this new path.

Here are some potential benefits of captives that you may find interesting:

Potential Benefits of Captives
1. Underwriting Profit
2. Investment income
3. Access to Reinsurance
4. Flexibility as to form and rates
5. Control
6. Insurance Accounting and premium tax deductibility
7. Enhanced loss prevention and claims management
8. Premium and loss allocation
9. Defensive strategies
10. Rate/Loss Disparity

To find out more about each of these potential benefits of captives and potential risks or drawbacks associated with captives please visit (Information cited also cited from): http://www.propertycasualty360.com/2013/07/22/top-10-benefits-and-risks-of-forming-a-captive?ref=hp&t=regulation-legislation&page=2