Benefits of Captive Insurance


The Pros of Group Captive Insurance

1. Greater Flexibility in Setting Premiums—Which Trend Downward

Traditional commercial market insurance companies must price premiums based on many factors: the cost of claims, overhead, profit for future investment, etc.

A parent/owner of a captive insurance plan can bypass many of these expenses and use it as an opportunity for investment.

Learn everything you need to know about how captive insurance programs work.

A history of exemplary loss prevention and more precise actuarial data of your company’s specific loss profile means premiums go down and the potential to retain profits goes up.

Replacing high premium third-party umbrella policies with a captive insurance plan means big time cost savings.

2.  A Wider Variety of Risks are Covered

When the commercial market is unwilling to cover certain risks, or charge far too high for such coverage, captive insurance fills in the gap.

Keep in mind—your company is already in the insurance business. Any risk uncovered by a traditional third-party plan is still an insurable risk you must cover with your profits should there be a claim.

Captive insurance allows you to create an investment fund for insurable risks. Should there be less claims than expected, YOU retain the profit instead of an insurance company.

3.  More Control!

Companies are constantly challenged to find the balance between providing adequate insurance coverage while maintaining a positive cash flow. It takes precise underwriting and accurate forecasting to maximize the returns from a fully conceived insurance plan.

You want complete control of your insurance plan to make the best, most informed decisions for your employees and the company at large. Forming a captive insurance company is one highly effective method to grasp more control of your company’s insurance plan—from top to bottom.

An insurance captive offers you greater control over what you cover (health, worker’s compensation, property, casualty, etc.), and how you cover it.

View Examples of Captive Insurance Company Success

4.  Captives Foster a Greater Safety Culture

Perhaps the greatest benefit of starting a captive insurance company or joining a captive is the increased incentive for improving your safety policies and procedures. When minimizing claims has a greater effect on your bottom line (and not the third party insurer), there’s a clear financial incentive to make your workplace safer.

Implementing a captive into your insurance plan means turning unfunded premiums into profits rather than losses. The better your company protects employees and refines safety processes, the more YOU benefit in your bottom line.

5.  Continuing Member/Owner Education and Association

Participation in a group captive puts you in affiliation with several actors in the captive insurance industry, many of which have many years of experience with self-insurance and non-traditional risk management: brokers, managers, actuaries, auditors, consultants, etc.

You’ll be part of a dedicated group of companies (in heterogeneous or homogeneous industries) with the shared goal of limiting losses and making safe practice and production profitable.

6.  Risk Management Becomes Profitable

Many companies consider risk management a siphon on the bottom line. It’s a cost center, and its expenses must be constantly evaluated to remain minimized.

A competently implemented captive insurance plan MAKES YOU MONEY.

While risk management remains an area of your business in need of regular attention, captive insurance turns it into a center for profit.

No matter your industry, the #1 goal is to turn a profit, and when it comes to options to increase revenue, there's no such thing as a hard "no."

Captive brokers at Alternative Risk Resources offer you a long-term profit generating program for your business with greater asset retention and various other benefits. The ability to turn a positive safety culture with a predictable loss profile into profitability is an opportunity you cannot ignore.

Schedule a FREE consultation today and:

  1.   Take complete control of your insurance operations
  2.   Foster a greater safety culture
  3.   Turn unused premiums into profit
Captive Insurance Company Formation Consultation

How Does Captive Insurance Benefit Your Company?

Captive insurance brokers at Alternative Risk Resources understand you have many questions regarding captive insurance solutions, and want to know how starting your own captive insurance company will benefit your company's cash flow.

If you’re considering the possibilities of joining a group captive, it's time you spoke to industry experts who outline a personalized plan for YOUR company. For more specifics on how captive insurance fits your company profile, schedule a free consultation with our captive insurance brokers today.

Learn more about how captive insurance companies work, and how we help you set one up.

Captive Insurance Brokers Explain the Many Benefits

Setting up your own captive insurance company and taking more control over your company’s financial loss prevention structure may seem like a lot to handle.

For more information on how captive insurance can benefit your company, contact Alternative Risk Resources today for a free consultation. We have many years of experience helping companies turn unused premiums into profit and get them more control of their financial present and future.

Contact captive insurance brokers at Alternative Risk Resources for a free consultation today.


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