The Section 831(b) or "small" P&C captive is becoming a big idea for midsize companies looking for cost-effective ways to transfer risk.

Captive experts say an 831(b) offers midsize companies an introduction to alternative risk transfer and its benefits, providing this class of insurance buyers a valuable cost-saving tool long utilized by Fortune 1000 companies.

Steve Kinion, director of Delaware's Bureau of Captive and Financial Insurance Products, refers to this series of self-insurance units as "captives with training wheels."

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