Captive Insurance Calculator
Our Captive Insurance Calculator helps you estimate the investment required for your client to join a captive, potential underwriting profit, and maximum out-of-pocket costs in a high-claims year.
This tool evaluates your client’s current insurance spend and how it could apply within a captive insurance program.
Watch this video first.
Get Your Results
Underwriting Profit
Underwriting Profit is the portion of premium your client keeps in a good year — and it’s one of the most important numbers in any captive.
In this example:
- A/B Captive Underwriting Profit:$149,113.
- Quota Share Underwriting Profit:$149,113.
With a gross premium of $230,469, this represents a 64.7% profit margin in A/B, and a 64.7% profit margin in Quota Share.
In other words — your client earns roughly double the profit in the A/B model compared to Quota Share, but also takes on double the risk.
Of course, keeping profit is great — but first, your client needs to know what it costs to join the captive. Let’s look at the required collateral next.
WE MIGHT HAVE A PROBLEM: If you are seeing this message, the average annual claim amount you entered caused the captive insurance company to lose money. This was due to one of two reasons:
- You accidentally entered the wrong number.
- Your client's claims were actually that high.
If the claims are more than 60% of the total premium yearly, captives may not be the right fit for your client's business.
Collateral
Collateral is like a security deposit your client makes when joining the captive. It ensures funds are available for future claims and provides a clear view of their upfront financial commitment.
In this example:
- A/B Captive Collateral is $221,664 total
- Quota Share Collateral is $221,664 total
That’s a difference of $0, meaning it costs about 0% more to join the A/B Captive compared to the Quota Share model.
However — for that additional collateral (if any), your client gets to keep 100% of the Underwriting Profit in the A/B Captive, rather than splitting it with a Quota Share reinsurance partner.
Now that they understand the upfront commitment, let’s look at their potential risk in a worst-case year.
Maximum Possible Premium
Maximum Possible Premium (MPP) shows your client’s worst-case exposure in a catastrophic claims year.
In this example:
- A/B Captive MPP: $1,480,000 → your client takes 100% of this risk.
- Quota Share MPP: $1,480,000 → your client takes only their share of this risk.
This is one of the biggest advantages of a Quota Share model — it allows clients to cap their downside exposure and take way less risk.
Now you’ve seen how profit potential, upfront cost, and risk exposure compare across these models. If you’d like help guiding your client to the best fit, we’re here to help.
