No captive option, is no longer an option
Captives can no longer be overlooked by mid-market brokers
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Demand for captives from mid-market clients has been growing steadily over the last decade or more.
Captive premiums now represent nearly 25% of the commercial insurance market.
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The barriers to entry are too high for most in the mid-market.
They make big money for big businesses – 90% of the Fortune 500 own single-parent captives.
Traditionally, single parent ‘pure’ captives are a complex business, but one that makes money for everyone involved.
But mid-market businesses simply lack the necessary financial clout and the critical mass of premium.
So they cannot effectively access the reinsurance market to limit their risk.
And fronting and collateral arrangements make captive ownership unviable.
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They’re about saving money, not making money.
It’s not possible to retain profit in a group captive.
So clients cannot build an asset that can take more risk, and make more profit, over time.
And, although clients must put up collateral, group captives aren’t an investment that makes a return – they’re business that save money.
Arguably, they look, operate, and behave much more like a mutual insurance company than they do a captive.
They dictate risk management practice to clients, and they’re only for casualty coverages, not property.
And they don’t pay commission to brokers.
The competitive threat is now too great
Simplified P&C placements
A turnkey captive product with everything included
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RE–PAID empowers brokers easily to give clients what they want.
And it’s commercially compelling for clients.
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I–RE issues ground-up A-rated insurance policies and certificates, with normal deductibles only.
Because the captive acts as a reinsurer, the exposure it takes is not visible.
This eliminates the need for a costly fronting insurer.
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Group captives and large single parent ‘pure’ captives normally require the arbitrary stacking of collateral.
This is where exposure is repeatedly collateralized – the amount required ‘stacks’ up year-on-year, normally for at least 5 years.
With RE–PAID, clients invest collateral at inception, in the form of cash or a letter of credit, and it is simply adjusted at each renewal dependent on actual exposure and losses.
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Single parent captives underwriting commercial property and casualty risk require reinsurance to limit exposure.
Otherwise, taking on what can technically be an unlimited exposure would be foolhardy at best.
With RE–PAID, only a limited amount of risk is reinsured to the captive, and for a limited amount of time.
This negates the need for excess of loss or stop loss reinsurance placement.
And a novation agreement is built is built in.
This dramatically simplifies the captive placement for brokers.
And it makes the captive exposure manageable and affordable for the client.
Making a captive placement as easy as a conventional deal
Where brokers maintain control and income
Premiums remain the same and brokers earn commission
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Unlike most alternative risk transfer deals involving high deductibles or self-insured retentions, premiums remain consistent, so brokers earn similar commission and do not have to sacrifice income.
Brokers earn 10% commission on commercial property and general liability lines.
Or they can opt to work for a fee, and then commission is removed and premiums are netted down.
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The role of the broker is essential in a RE–PAID captive placement, where their trusted relationship and advice are more important than ever.
Brokers perform their role in exactly the same way as they would do normally.
RE–PAID is just like any conventional insurance placement – the process and timeframes will be completely familiar.
I–RE is a broker-only market keeping it business as usual
And gain competitive advantage
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Brokers can deliver exceptional value, presenting clients with an investment opportunity that can deliver truly exceptional returns.
RE–PAID can be an unbeatable tool to win new clients.
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RE–PAID can be a game-changer in building the client relationship.
It can help demonstrate a broker’s ability to bring fresh ideas and a new approach.
Many of our broker partners use RE–PAID as a ‘hook’ win new business, even if the client does not end up being best suited for a captive.
And win new clients
To increase retention
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RE–PAID helps brokers retain the best clients – those with big premiums (that pay commission) and few small claims (that require less servicing).
These are typically the most valuable clients.
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RE–PAID helps brokers increase the life-time value of their most valuable clients.
That’s because the formation of a captive is a long-term strategic decision for clients.
It’s very difficult for a competing broker to deliver enough value to compete against a captive deal.
RE–PAID makes clients extremely sticky.
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Get an illustration
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Only very basic information is required. We will quickly work up an illustration, with a profit projection.
This establishes the business case first, and ensures you don’t waste your time doing any unnecessary work.
Get our application form download
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Get captive ready
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Work with a captive manager to understand what’s involved and the decisions that need to be made. This includes things like:
What’s the captive going to be called?
Who’s going to own and control it?
Which advisers are required?
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Get a quote
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All the information you provide directly impacts the insurance premium and how much goes back to the captive.
It’s a real underwriting process – you can talk directly to the underwriting team, who take an individually tailored approach to provide the:
Insurance quote
Reinsurance quote
Profit projection
Get in touch
We get it
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Launched back in 2019, RE–PAID was the first turn-key US P&C mid-market captive product.
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Every year since launch, I–RE has achieved market recognition as an award finalist and winner.
Underwriting solution of the year
2025 Captive Review US AwardsE&S Underwriting team of the year
2024 Insurance Insider US AwardsUnderwriting solution of the year
2024 Captive Review US AwardsUnderwriting solution of the year
2023 Captive Review US AwardsProgram launch of the year
2022 The Insurer Program Manager AwardsReinsurance firm of the year
2021 Captive International US AwardsInsurance solution of the year
2020 Captive Review US Captive AwardsInsurance underwriting team of the year
2020 Business Insurance US Insurance AwardsMGA initiative of the year
2019 Insurance Day London Market AwardsInnovative ART structure/new risk placement
2019 Captive Review US Captive Awards
