Over the last couple of months, we released a series of need-to-know facts about our casualty group captive model. Below, you will find a summary of these facts, along with some additional resources to help you better understand the benefits of our group captive insurance model.
The group captives that we support are 100% member-owned and member-controlled, and all members have an equal vote, regardless of size. Group captive insurance allows businesses to become owners of their own insurance companies rather than insurance buyers.
Our group captive insurance model provides member-companies with more control over their insurance costs. The group captives we support derive premium primarily using each member’s individual 5-year loss history. So, when group captive members continuously focus on improving workplace safety and controlling losses, they can lower their premiums over time.
Click here to download the Insurance Information Institute’s White Paper — A Comprehensive Evaluation of the Member-Owned Group Captive Option.
Brokers play an integral role in our group captive process. Captive Resources works closely with insurance brokers to support member-companies throughout the various stages of group captive ownership. Our broker partners play an essential role in the beginning stages by helping determine if group captive insurance is a good fit for their client’s business. Once a company joins a group captive, the broker, and our team at Captive Resources, continually work with the member to ensure it gets the most out of its captive membership through ongoing evaluation, regular risk assessments, immersive workshops, continuing education, and more.
If you are an insurance broker interested in partnering with Captive Resources, please contact us to learn more.
Captive Resources’ member-owned group captive model works well for companies from an array of industries and of various sizes. The companies that find the most success in our model do share some common attributes, both in terms of their approach to insurance and their business profiles. One fundamental trait that the most successful group captive members share is a commitment to risk management and safety. Our group captive model attracts best-in-class, safety-conscious companies and helps them get more out of their insurance programs.
Check out this infographic to find out if your company could be a good fit for group captives.
As equal stakeholders, member-insureds play a principal role in the direction of the group captives that we support. As a consultant, Captive Resources provides guidance and expertise, but member-companies are the ultimate decision-makers. Each group captive utilizes a committee structure with active participation among members. Committees are comprised entirely of members and oversee critical captive functions like financial performance, underwriting, and risk control. Committees bring their recommendations to the entire Board for consideration and voting.
Our casualty group captive model focuses on lines of coverage that produce frequent and predictable losses that member-companies can significantly impact through targeted risk control and safety but also incorporates protection for large losses. Workers’ compensation, general liability, and commercial auto are typical and are also coverages that are required by a majority of companies, while other ancillary coverages are more company-specific.
Our group captive model has several aspects that help members feel comfortable with the model and sharing risk with other companies. Beyond recruiting best-in-class risks, the captives we advise include different types of protection for the captive and its member-owners:
The group captives we work with require a variety of expertise and support to operate efficiently and effectively. The captives have virtually all the same major functional areas of a traditional insurance company, but they don’t have employees. To fulfill those responsibilities, services like policy issuance, claims administration, loss prevention, and financial auditing are outsourced. By “unbundling” the services, the captive can make adjustments to its services more easily with less disruption and lower cost.
Our group captive model provides member-company insureds a framework for controlling claims costs by allowing them to play an increased role in their insurance program, including proactive involvement in supporting TPAs in the claims management process. The group captives we work with also help control claims costs by providing members additional claims advocacy and support to improve claims adjusting effectiveness and efficiency.
Interested in learning more about group captives? Click here to download a copy of the Insurance Information Institute Executive Brief.
Be sure to keep an eye out for a new fast fact series, which will focus on our Medical Stop Loss group captive model.
If you have any questions about group captive insurance, please contact our team. We are always here as a resource to you!