RE-PAID
So, what’s the upside?
Captives are big business, for big business, and they make big money
Captives make money for everyone involved
90% of Fortune 500 businesses own single-parent captives
Their premiums now represent nearly 25% of the commercial insurance market.
Traditionally, these are a complex business, but one that makes money for everyone involved.
Mid-market captives made easy
But the costs and complexities of single-parent captives are too high for most mid-market businesses
Mid-market businesses simply lack thefinancial clout, and the critical mass of premium.
Cannot effectively access the reinsurance market to limit risk.
Fronting and collateral arrangements make mid-market captive ownership unviable.
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Single parent |
Group captive |
What's needed |
A-rated |
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Property |
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Casualty |
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Flexibility |
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Control |
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Low cost |
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Easy entry |
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Broker commission |
So group captives have often been the only option
But group captives are a business that saves money, offering savings primarily via dividends.
However, they dictate risk management practice to clients, and they’re only for casualty coverages,not property.
And they offer clients no flexibility or control.