Bank Services

Not all enterprise risks are addressed by commercially available insurance. Emerging risks such as cyber security and reputation risk create significant exposures for banks of all sizes. At the same time, commercial insurance carriers are pushing banks to higher deductibles and there remain significant gaps in coverage and exclusions in commercial insurance policies. This creates unfunded risks, which must be evaluated as a part of any bank’s enterprise risk management process.

A growing number of banks throughout the country are forming captive insurance companies – known as “captives” –  to cover these unfunded risks. A captive is a legally licensed limited purpose entity and casualty insurance company which can both write insurance that commercial carriers will not as well as write broader policy forms than commercial insurers. A captive structure is not meant to replace a bank’s current commercial policies. Instead the captive augments the commercial policies by covering the bank’s commercial deductible layers, increasing coverage levels on existing policies (excess layers), and identifying other currently unfunded risks to insure where commercial insurance is not available to the bank.



• Independent assessment of a bank’s commercial insurance coverage, which provides a detailed peer comparison for each commercial policy
• Identification and selection of coverages that can be placed inside the captive
• Assist with the feasibility study and implementation of a captive 
• Ongoing Captive Management


• KeyState Captive Management has been endorsed by 27 state banking associations or their for-profit subsidiaries. Learn more about these endorsements here
• KeyState acts as a Captive Manager for over 70 banks from 23 states
• The KeyState management team works closely with a bank’s existing insurance brokers
• Superior service


David Guerino, SVP & Managing Director - Captive Insurance • [email protected] • 802.316.4333