What is the difference between captive and excess insurance?

Captive insurance and excess insurance are both a form of insurance, but with some distinct differences. Captive insurance is an insurance company owned by the insured. This form of insurance is used to insure risks that can’t be covered by traditional insurance companies, such as certain kinds of liability or operational risks. Excess insurance is a type of insurance which provides coverage after an initial primary policy has been exhausted. Excess insurance policies are used to protect an individual or business from large, potentially devastating losses. In Alaska, captive insurance is regulated under the Alaska Division of Insurance, with rules in place to protect the insured. The division sets the criteria that must be met in order to receive a captive insurance license, as well as the capital and surplus requirements and the criteria for solvency. Excess insurance, on the other hand, is not regulated by the division and is instead regulated by the individual insurance company. In summary, captive insurance is an insurance company owned by the insured and regulated by the Alaska Division of Insurance, and it is used to insure risks that can’t be covered by traditional insurance companies. Excess insurance is a type of insurance which provides coverage after an initial primary policy has been exhausted, and is regulated by the individual insurance company.

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What is the difference between captive and excess insurance?

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