The Regents of the University of Colorado, in collaboration with the University Risk Management, successfully formed a captive insurance company, Altitude West. A captive is a limited purpose, licensed insurance company; the main business purpose of which is to insure the risks of the captive’s owner, who is also its principal beneficiary. The captive insurance company owner has direct involvement in and influence over the captive’s major operations, including underwriting, claims management, policy form, and investments. Altitude West operates by and for the University of Colorado.
The advantages offered by Altitude West as a captive insurer are significant. It gives the University the ability to provide customized coverage specific policy forms that will allow CU to address its unique risks and exposures.