Hunter NelsonOwner of Nelson Insurance Agency

Captive Insurance: Start Your Own Company Explained!

4 Feb 2026 · 1 min

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In this video, Hunter Nelson provides a concise overview of captive insurance for newcomers. He explains that entering a captive means either starting your own insurance company or joining one as an owner. Nelson distinguishes between group captives, which are shared among multiple organizations, and single‑parent captives, which are owned by a single entity. He then outlines how premiums are handled: roughly 35% of each premium payment covers the captive’s operating and management fees, while the remaining 65% is allocated to the captive’s reserve funds, referred to as A‑funds and B‑funds. The explanation is framed as a basic, step‑by‑step guide for those considering a captive insurance structure.

Chapters

Now, when you guys are hopping into captive insurance, you mean starting your own insurance company, you'd be starting your own insurance company or joining an insurance company where you become the owner of. And I'm gonna get into the difference between captive or group captive insurance and, uh, single-parent captive insurance. And this is really just a basic overview. So you're hopping into a captive, right? You start paying those premiums, just like owning a home. Some of it's going to go to the captive fee. Some of it's going to go to what's called your fund. Well, it's going to go to the fund. You get A funds, you get B funds. We want to keep it simple here. And, um, if you guys are paying in that money, you're roughly about 35% is going to go to managing the captive to make sure the business is running, the insurance company is running, everything on those lines. And then the rest of it is going to go to your fund.