For organizations, member owned group captives can provide new opportunities to turn insurance into a manageable cost. These organizations look for options to their current risk management program, beyond changing insurance coverages.
Group captives are independently owned and operated insurance companies that provide insurance to, and are controlled by, their owners. A captive insurance company analyzes and insures the specific risks of its owners, typically reducing operating costs, and returns underwriting profits and investment income to them in the form of dividends.
A member-owned group captive is an ideal form of alternative risk financing for companies that have:
- Long-term financial strength and stability
- Management teams committed to safety and with solid safety programs in place
- A loss history that is better than average in their respective industry
- Minimum casualty premiums of $150,000, however, our group captive members typically have annual premiums of at least $250,000.
We study your business and develop a complete risk management program designed to:
- Manage and lower cost
- Maintain control
- Optimize choice
- Stay current
- Generate wealth
As a member of a group captive, you are no longer susceptible to the ever-changing cyclical nature of traditional insurance providers. Other benefits enjoyed by members include:
The price of insurance coverage purchased in the conventional market can often times include mark-ups to pay for the insurer’s acquisition costs, marketing expenses, higher commissions, administration and overhead. Such pricing is specifically designed to deliver profit to the insurer’s bottom line. In a group captive, the goal is to minimize those costs and enhance your bottom line.
Better services and management.
A group captive can purchase strategic insurance products that allow each captive member to manage predictable losses while transferring potential catastrophic losses. This leads to improved loss control and greater awareness of the factors that commonly give rise to losses so that they may be reduced and often prevented in the future.
Enhanced profit potential.
As a member of a group captive, you are rewarded for controlling losses and claims by receiving dividends and investment income. Your loss experience directly determines your dividends and future premiums allowing you to be more competitive in the marketplace.
Long-term control of your insurance destiny.
Membership provides an opportunity for businesses to control their insurance and risk management through ownership. Because members are owners, they can customize insurance coverages to better meet their needs and reduce their long term cost of risk.
More time spent running your business.
Turning to an independent captive advisor means you spend less time addressing insurance issues and more time running your business. We will help you implement, coordinate and facilitate the growth and continued success of your risk management program.
Insights & Resources
Timely insights from our thought leaders on relevant industry topics.
There are strong economic incentives for business owners to consider this strategy, including establishment of a profit center, improved claims management, and underwriting flexibility.
Captive insurance has its own “language.” Peter Gernold, Captive Practice Leader and SVP, has contributed this easy-to-understand paper on closing costs and processes.
Insurance services, benefits consulting services and insurance products are offered through Key Insurance & Benefits Services, Inc. (“KIB”), which is a licensed insurance broker and agent. Insurance policies are obligations of the insurers that issue the policies. Insurance products may not be available in all states. KIB and KeyBank are separate entities, and when you purchase risk management services, business consulting services or insurance products you are doing business with KIB, and not KeyBank.