What is the difference between independent and captive insurance companies?

The difference between independent and captive insurance companies depends on the state and the type of insurance. In Idaho, independent insurance companies are separate entities that are regulated by the state through the Idaho Department of Insurance. They offer various types of insurance products to individuals and businesses including health, auto, and home insurance. Conversely, captive insurance companies are different in that they are owned by other companies. They are not regulated by the state department of insurance, and therefore, they are not required to follow the same regulations as independent insurance providers. Captive insurance companies usually offer specialized insurance products that are tailored to particular industries and organizations. This is beneficial because an organization can choose an insurance provider that is best suited to their unique needs. All in all, the major difference between independent and captive insurance companies is that independent companies are regulated by the state and offer a wide range of insurance products to individuals and businesses while captive companies are owned by other organizations and typically specialize in one type of insurance product.

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