Benefits Perspectives: Risk considerations for funding U.S. group life and disability insurance programs through captives

Funding group life and long-term disability insurance programs through captives is becoming more common as companies look for new ways to lower the costs of providing employee benefits. Because captives retain a portion of the insurance risks, they have to deal with many of the same issues as other group life and disability insurance writers. But captives may be exposed to greater volatility and greater concentrations of risk.