We’ve been covering the ebbs and flows of premium costs in the commercial insurance market on this blog for several quarters now. If you’ve followed that coverage, you know it's been all flow and no ebb for quite some time now.
In Q1 2022, that tide continued to rise as commercial property and casualty premiums increased for the 18th consecutive quarter. According to the latest Commercial Property/Casualty Index from The Council of Insurance Agents & Brokers (CIAB), premiums rose on average by 6.6 percent across coverage lines and account sizes.
The new report highlighted several noteworthy trends in the commercial insurance market:
Typically, we use this opportunity to point out how group captive insurance can help companies avoid the cyclical, volatile nature of the traditional market. While that assessment remains as true today as ever, we’d be remiss if we didn’t elaborate on that point to explain that group captives are much more than a hard market solution.
“We’ve found that our group captive concept works well in either a hard or soft market,” Captive Resources’ CEO Nick Hentges recently told the Captive Insurance Companies Association. “It’s key to remember that a major goal of a group captive is to stabilize costs for its member-owners so they don’t feel the [volatility] — the ups and downs — of the traditional insurance marketplace nearly as much.”
The group captives that work with Captive Resources are owned and controlled by their member companies. The member-owned group captive structure offers companies several ways to counteract the volatility of the traditional commercial insurance market — regardless of how it’s trending — including:
These advantages ring as true during soft markets as they do in the rougher waters of a hard market. While it’s natural for companies to be more open to alternative solutions during a hard market, group captives are worth exploring regardless of market conditions.
Contact us to learn how joining a member-owned group captive can benefit your company.