Are you a high-net-worth individual looking to shield your assets, reduce tax liabilities, and take control of your risk management? Captive insurance companies might be your most powerful financial ally in 2025.
In this guide, we’ll break down everything you need to know about the best captive insurance companies in the USA, why they matter to wealthy individuals, and how they can help you gain an edge in wealth preservation, liability control, and estate planning.
What Is a Captive Insurance Company?
A captive insurance company is a private insurer owned and controlled by its insureds — typically a business, family office, or group of wealthy individuals. Rather than purchasing traditional insurance from the open market, you create your own insurer to underwrite your unique risks.
Why does this matter?
- You retain underwriting profits.
- Premiums can be tax-deductible.
- You get customized policies for niche or hard-to-insure risks.
Top 5 Captive Insurance Companies for High-Net-Worth Individuals (2025)
Here’s a look at elite-level captive providers dominating the U.S. landscape this year:
1. Artex Risk Solutions
- Headquarters: Itasca, Illinois
- Why It’s Top-Tier: One of the largest captive managers globally, with extensive experience in small-to-mid-sized enterprises and family wealth.
- Key Offering: Turnkey captive management, feasibility studies, risk structuring.
Ideal For: Entrepreneurs, business owners, and HNW individuals seeking control with scalability.
2. Strategic Risk Solutions (SRS)
- Headquarters: Concord, Massachusetts
- Why It Stands Out: 100% captive-focused. SRS is known for creating tailor-made solutions across various jurisdictions including Vermont, Hawaii, and the Cayman Islands.
- Bonus: Independence from insurance carriers.
Ideal For: Clients wanting white-glove service and full transparency.
3. Risk Services LLC
- Headquarters: Sarasota, Florida
- Why They’re Popular: Expert in closely held captives. Known for working with estate attorneys and tax professionals for integrated HNW planning.
- Key Strength: Excellent compliance with IRS 831(b) micro-captive requirements.
Ideal For: Physicians, law firms, and real estate investors with net worths above $5M.
4. Hylant Global Captive Solutions
- Headquarters: Toledo, Ohio
- Why It’s Great: Family-owned since 1935, Hylant offers a strong mix of risk analysis, financial engineering, and compliance.
- Perk: Works closely with CPAs and wealth advisors.
Ideal For: Those with generational wealth or intergenerational family offices.
5. Captive Alternatives (CapAlt)
- Headquarters: Atlanta, Georgia
- Specialty: Best known for their Private Insurance Company™ model, designed for wealth preservation and tax optimization.
- Bonus: Flexible jurisdiction options including Puerto Rico and U.S. domiciles.
Ideal For: HNW families seeking strategic tax sheltering and long-term asset protection.
Benefits of Using a Captive Insurance Company in 2025
Captive insurance is no longer just for large corporations. Wealthy individuals, particularly those with complex risk profiles, are increasingly turning to captives to gain:
Tax Efficiency
Premiums paid to a captive may be tax-deductible under the right structure. Micro-captives under section 831(b) allow for up to $2.8 million (2025 limit) in tax-deductible premiums.
Tailored Risk Coverage
Traditional insurers may deny coverage or charge high premiums for risks like:
- Cyber liability
- Director & officer (D&O) liability
- Intellectual property loss
Captives let you custom-insure these.
Estate & Wealth Planning
You can use captive companies as part of a multi-layered estate planning strategy, especially when combined with:
- Asset protection trusts
- Family limited partnerships
- Dynasty trusts
For related reading: 👉 Best Asset Protection Trusts for High Net-Worth Individuals in the USA (2025)
Frequently Asked Questions (FAQs)
❓ Is captive insurance legal in the USA?
Yes. When structured correctly and compliant with IRS regulations, captive insurance is 100% legal and IRS-recognized. However, misuse (especially with 831(b) captives) can attract audits.
❓ What are the tax benefits of captive insurance in 2025?
Eligible captives (especially micro-captives) can receive premiums tax-free up to a certain limit. They may also allow owners to defer or control income recognition, leading to huge tax deferral benefits.
❓ How much net worth should I have before forming a captive?
While there’s no hard rule, $5M+ in annual revenue or net assets is generally recommended to justify the cost, compliance, and risk management advantages.
❓ Which U.S. states are best for captive domiciles in 2025?
- Vermont
- Delaware
- Utah
- Tennessee
These states offer favorable regulations, quick setup, and solid legal environments.
Final Thoughts
Captive insurance companies offer one of the most underutilized financial tools for high-net-worth individuals in 2025. Whether you want to reduce tax burdens, protect against niche risks, or pass on wealth smartly — a properly structured captive could be your secret weapon.
But remember: it must be done right — with guidance from experienced captive managers, tax attorneys, and financial advisors.