Have you heard of captive insurance?

Unlocking Savings and Control: The Power of Captive Insurance

For many businesses, the traditional insurance market can feel like a black box – premiums rise, control is limited, and true cost savings seem out of reach. But what if there was a way to take ownership of your insurance program, potentially reduce costs, and even earn back unused premiums? That's where captive insurance comes in.

Captive insurance allows best-in-class companies to come together and form their own insurance company. This strategic commitment can lead to safer workplaces, lower overall insurance costs, and greater control over your programs.

Here are some key benefits of joining a group captive:

• Premiums Based on Actual Loss History: Unlike conventional plans where premiums are often based on broad class codes, group captive members enjoy custom premiums that reflect their actual 5-year loss history. This means if you manage risk efficiently, your annual costs can decrease.
• Lower Operating Costs: Group captives minimize overhead and spread costs among members, leading to reduced operating expenses. On average, only 32 cents of every dollar go to operating expenses, compared to approximately 40% with conventional plans.
• Risk Management Resources: Members gain access to a wealth of resources, including a network of over 400 loss-prevention professionals, educational workshops, networking opportunities, and regular Risk Control Assessments.
• Insulation from Market Conditions: Group captives are designed to remove best-in-class companies from volatile market fluctuations, providing more stabilized and predictable insurance costs.
• Profit Potential from Unused Loss Funds: When members effectively manage risk and preserve their loss fund, the captives return those dollars to the members, plus investment income. Some captives supported by Captive Resources invest in a shared fund that earns an annual return of over 6%. Members have earned dividends in 98% of accident years, with around 60% of years seeing dividends over 20%.
• Ownership Over Insurance Program: Becoming an owner in your own insurance company gives you greater control over claims processes, third-party administrator (TPA) selection, and premium costs.

While group captive insurance is a long-term strategy, not a short-term cash grab, almost three-quarters of new bound policies in group captives had lower costs than their previous conventional plans, with many saving 10% or more.

If your company is financially strong, has superior performance, and is entrepreneurial, invested, and safety-conscious, a group captive could be a powerful alternative to traditional insurance.

Give us a call at 435-674-2221 and we can discuss the details about a captive insurance program.