Captive CE

Captives as Risk Retention Mechanisms

Course Details

This course is not subject to discount pricing.

Additional Credit Available:

Add Insurance CE

Delivery Method: 

QAS Self-Study

PDF Download: 


Provider of Record: 


Field of Study: 

Specialized Knowledge

Last Reviewed: 

January 2023

Study Level: 


Access Period:

12 months

Exam Requirements

Proctor Required: 


Passing Grade: 






Please note: Adding Additional Credit may change exam requirements.


This course discusses the concept of “cost of risk” (COR) )—how to quantify it, reduce it, and structure a program that will reduce its financial impact on the risk takers. The objective is to demonstrate how captive insurance can be used to reduce these costs. It provides an overview   what a captive is, how it can be used to reduce the cost of risk, and the different types of captives that are in use today. It also reviews the various functions that must be performed by a captive to be effective and delves into the tax and accounting issues that impact the effectiveness of a captive in managing the financial impact of risk. 

Learning Objectives

Upon completion, students will be able to:

  • recognize the risk management purpose of using a captive to finance an entity’s risks, identify the elements of captive insurance, and recognize why a captive can insure many types of risks
  • distinguish among various types of captive insurance companies
  • understand the various ways in which the costs of financing risks through a captive can be lower than the costs of commercial insurance or self-insurance
  • recognize the ways in which captive insurance and other risk financing methods can smooth the financial impact of risk
  • identify factors considered in determining whether premiums paid to a captive are tax-deductible

Designed For

Property and casualty risk, safety, insurance, finance, and accounting professionals


A basic understanding of risk financing principles and how the insurance industry is structured
International Risk Management Institute, Inc. (IRMI) is the premier provider of risk and insurance continuing education and reference publications, and is considered the ultimate authority by leading insurance practitioners. Written by industry experts, IRMI courses provide the most up-to-date, practical and reliable information possible.

Advanced Preparation


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