The exposures insured in the captive should be reasonably predictable. Low-frequency/high-severity catastrophe risks are poor candidates for captive coverage. (Photo: iStock) The exposures insured in the captive should be reasonably predictable. Low-frequency/high-severity catastrophe risks are poor candidates for captive coverage. (Photo: iStock)

There is a mystique — and more than a few misconceptions — about captives.

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