Captivating Insurance

Here's an option for entrepreneurs looking to control insurance premiums: Start your own insurance company.

Raymond Ankner, a veteran of the insurance industry, is helping closely held, medium-sized companies create their own insurance companies and self-insure. Besides controlling costs, there are some estate-planning reasons to do so as well, he says.

Setting up your own insurance company — “captive insurance,” in industry parlance — was once the province of only the largest Fortune 500 companies because of the cost and the potential liability involved.