Many people bemoan the practices of the financial community and the effect it has had on the economy. However, regulating business has always been a difficult and complicated affair. One of the effective methods employed in sound financial practice is the regulation of insurance agencies. Companies may not be able to rely completely on the performance of a particular company, but they are more able to rely on the backup of their insurance. The government ensures this by enacting strict requirements on the capital funds available to insurance companies. This includes captive insurance companies, which are formed for the sole purpose of ensuring their parent company. However, many companies who would otherwise use captive insurance to offset their business risks cannot assemble the required capital to form a captive insurance company that will meet government standards. For these companies, renting a captive can be the solution.

Insurance brokers can match an existing captive with a potential client. Often, the captive parent is in an industry similar to that of the rental clients. In this way, the captive is tailored to the clients, who share similar risk profiles. These clients become part of a collective that benefit from the captive insurance without having to deal with the massive setup costs. For some specialty companies that cannot take advantage of traditional insurance, rent a captiveis the best alternative to meet their risk requirements without breaking the budget.