What is the difference between independent and captive insurance companies?

Independent and captive insurance companies are two distinct types of insurance companies operating in the state of Washington. An independent insurance company is one that operates independently from other insurance companies, operating on its own to provide insurance coverage in the state. These companies are generally large national companies that offer a wide range of services and products. In contrast, a captive insurance company is one that is owned by, and works in partnership with, another company or entity. These types of companies are usually smaller and specialize in providing coverage to a specific customer or group. They often focus on providing lower costs to their customers, and their services are usually tailored to the specific needs of their client. The primary difference between independent and captive insurance companies is that independent companies operate without any external influence, while captive companies are under the control of their parent company. Independents are often more flexible and have the ability to offer more customized services, while captives focus on providing cost-effective coverage to their clients. Additionally, independent companies are often more financially secure than captives.

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What is the difference between independent and captive insurance companies?

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