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Group Captives

Group Captives – An Alternative to Conventional Insurance for Mid-Market Accounts

“Turn your premiums into profits”

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, 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 services and products, such as specific and aggregate excess reinsurance coverage, that allow each captive member to manage predictable losses while transferring potential catastrophic losses.

Enhanced profit potential. As a member of a group captive, your safety and cost containment efforts are rewarded. You realize the full benefit of claim reductions, while investment income accumulates to your benefit. This means more money in your pocket to invest in whatever way your business needs it most.

Long-term control of your insurance outlook. Group captives afford their members the ability to customize insurance programs that are tailored to their specific needs, so that you’re not paying for coverage not wanted or required.

Who should consider a captive?

A member-owned group captive insurance company is ideal for organizations that share qualities such as:

  • Long-term financial strength and stability;
  • Management teams committed to controlling claims;
  • Claims experience that are better than average; and,
  • For Health Insurance, 50 – 500 employees enrolled
  • For Property & Casualty Insurance, minimum casualty premiums of $100,000. However, group captive members typically have annual premiums of at least $200,000, and up to $5 million.

For more information or to have a conversation about whether a group captive solution is right for your business, contact Ed Kushlis ekushlis@insassoc.com 301-838-8830.

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