Escalating commercial insurance prices. Increasing market volatility. Growing pressure on companies to reduce their total cost of risk (TCOR). All of these challenges are prompting mid-sized companies to seek alternatives to traditional casualty insurance. Our member-owned group captive model addresses these issues by providing companies the opportunity to become stakeholders in their own insurance company.
Coverages
Captive Resources (CRI) supports dozens of different casualty group captives — both homogeneous and heterogeneous. These group captives provide three types of commercial casualty insurance:
General Liability
Automobile Liability & Physical Damage
Group Captive Members are Safer than Average Companies
Our group captive model incentivizes members to make their workplaces safer. According to an independent study, members experienced 48 percent fewer fatalities and 22 percent fewer workers’ compensation claims than industry averages.
Member Company Industries
The member-companies that we work with come from a wide range of industries. While this list is not all-encompassing, the major industries represented in the casualty group captives we support include:
- Manufacturing
- Distribution
- Construction
- Trucking
- Transportation
- Temporary Employment Agencies
- Retail
- Food and Beverage Production
- Hospitality
- Healthcare Services
- Agri-Business
- Oil and Gas Well Operations/Services
Typical Member Profile
With over 6,000 member-companies in the group captives we support, our model works for a variety of companies. However, we’ve found the most successful group captive members possess qualities like:
- Entrepreneurial spirit with the drive to take more control over insurance programs.
- 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.
- Annual casualty premiums of at least $250,000 (minimum of $100,000). Many group captive members have higher premiums, often between $500,000 to $5 million, with some premiums as high as $25 million or more.
Group Captive Advantages
Our model offers members several advantages, including:
Greater Control Over Costs
Our group captive model affords members multiple ways to control their insurance costs. The group captives we support base each member-company’s premium on individual loss experience — something which members are fully able to control and reduce. The captives have lower operating costs than traditional insurers, thanks to efficiencies gained through the unbundling of services and group purchasing power. And, the captives only accept best-in-class companies, leading to above-average risk pools.
Increased Profit Potential
Members’ unused loss funds (underwriting profit) and accrued investment income is returned in the form of dividends, further reducing overall costs. And, since controlling risk contributes directly to a company’s bottom line, group captive members have an inherent incentive to make their workplaces safer.
Safer Workplaces
Backed by CRI’s dedicated team of risk professionals, the captives we work with strive to support this mission. Captives develop programs and metrics tailored to members’ needs and solicit feedback to ensure that risk management programs meet member needs and expectations. This commitment to safety not only saves companies money but also helps prevent workplace injuries and fatalities.
Read more about the advantages of member-owned group captives.