As a member of a group captive, you are far less susceptible to the ever-increasing and unpredictable costs imposed by conventional insurance providers year after year. Other benefits enjoyed by group captive members include:
Lower costs. Conventional insurance pricing rarely reflects the actual cost of the protection you are purchasing. This cost often includes markups to cover the insurer’s acquisition costs, marketing expenses, high commissions, administration and overhead. This cost structure is specifically designed to deliver profit to the insurer’s bottom line. In a captive, the goal is to minimize those costs and enhance your bottom line.
Better services and better management. A captive can purchase strategic insurance products, such as specific and aggregate excess reinsurance coverage, that allow each captive member to manage predictable losses while transferring potential catastrophic losses. For captives supported by Captive Resources, this leads to improved loss control and greater awareness of the factors that commonly give rise to losses, so that they may be reduced and often prevented in the future.
Enhanced profit potential. As a member of a group captive, safety pays. You are rewarded for effective risk management by receiving dividends that are directly related to loss performance, while investment income accumulates to your benefit. That’s more money in your pocket to invest in whatever way your business needs it most.
Long-term control of your insurance outlook. Group captives overseen by Captive Resources afford their members the ability to customize insurance programs that are tailored to their specific needs, so that you’re not paying for coverage you don’t require. Also, as a captive grows, so does its risk tolerance and ability to negotiate favorably with reinsurers.
Give your attention to what matters: your business. By turning to an independent captive consultant such as Captive Resources, you spend less time addressing insurance issues and more time running your business.
Who should consider a captive?
A member-owned group captive insurance company is ideal for organizations that share such qualities as:
- Long-term financial strength and stability;
- Management teams committed to safety, with solid safety programs in place;
- Loss histories that are better than average for their respective industries; and,
- Minimum casualty premiums of $100,000. However, group captive members typically have annual premiums of at least $250,000, and commonly between $1–5 million, but can reach or exceed $25,000,000.