801-352-1161 | 5965 S 900 E Murray, UT 84121

Captive Insurance

  • Coverage tailored to meet your needs.
  • Reduced operating costs.
  • Improved cash flow.
  • Increased coverage and capacity.
  • Investment income to fund losses.
  • Direct access to wholesale reinsurance markets.
  • Funding and underwriting flexibility.
  • Greater control over claims.

Captive Insurance

Performance Based

You take control.

For midsize to large companies, there are alternatives to the traditional purchase of insurance to finance risk. You may find that there are areas of substantial risk for your company where insurance is not commercially available in the marketplace. If your company has demonstrated a long history of superior safety, the ability to control risks, and is able to avoid third-party liability claims, you may find risk financing alternatives attractive.

Performance Based Insurance has been around for more than half a decade. Most Fortune 500 and Fortune 100 companies use Performance Based Insurance to manage their risks. You can have the option to cut your premiums in half, literally… You are in control of the profits instead of standard markets keeping them. You are able to receive what it rightfully yours, especially since you earned it!

Why Have I not heard about this before?

Until now, Performance Based Insurance has only been available to a very select group of large businesses with significant premium and resources for your company. Performance Based Insurance can be suitable for companies with premiums as low as $100,000 or 35 full time employees. Performance Based Insurance is also about shifting control away from the insurance community and back to the employer where they can control their own destiny and reduce their costs over the years.

Opportunities:

  1. Learning how your specific industry is providing leading safety practices, pay to employees for retention, devolvement in growing your business.
  2. In house claims – You are able to choose an in-house counsel to lead your companies claims.

Who Should Consider a Captive Market?

  • A company culture with best in class performance
  • A loss history that is better than average in their respective industry
  • Minimum casualty premiums of $100,000 or 35 full time employees
  • Companies wanting to take control in their risk, and improve safety while saving valuable premium dollars

Such risk transferring alternatives come in many forms such as:

  • Single Parent: owned by an individual company and the company owns the benefits of their own experience.
  • Group: owned by multiple companies with like exposures (homogeneous group) or multiple companies from different industries that want to share risk.
  • Rent A Captive: owned by a group or organization. This form allows another company to participate but with very limited ownership or captive profit sharing.
  • Agency: owned by an insurance agency or organization to pool resources of a specialty group or niche. The insurance agency retains all the benefits of captive ownership.
  • Risk Retention Group or Risk Purchasing Group: pool resources to negotiate exclusive rates and coverage of an insurance program.

Questions & Answers

A captive is a property and casualty insurance company that is set up to insure the risks of an actual operating business. You, as the business owner, will own the insurance company and have control over the money that is invested inside of it.

Owning a captive insurance company allows for your business to mitigate non-insured risk exposure that may not be available with your current commercial insurer, while also allowing your business to capture the underwriting profits on the premiums paid to the insurance company.

While there can be significant tax benefits to owning a captive insurance company, tax benefits should not be the primary reason for establishing a captive insurance company. Risk mitigation and risk management must be the primary purpose of establishing a captive insurance company. There musts be real risks that can be insured.

Captives can be suited for all industry and business types as long as there is insurable risk. Captive Insurance Group performs a very granular analysis of your business and provides a preliminary feasibility analysis to determine whether or not the captive program would work for your company’s needs. This analysis is free of charge as we want to assure that you have a deep understanding of the captive program before spending a dollar.