Captives are now mainstream

Captive premiums now represent nearly 25% of the commercial insurance market.

They’re now part of the mainstream, and cannot be overlooked by brokers placing mid-market business.

They often don’t stack up for clients – they come up short, or are not viable.

Fronting

Collateral requirements

Reinsurance market access

It’s not possible to retain profit in a group captive. Clients cannot build an asset that can take more risk and make more profit over time.
Although clients must invest collateral, group captives aren’t an investment that makes a return – they’re a business that saves 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.

90% of the Fortune 500 own single-parent captives.
Traditionally, these are a complex business, but one that makes money for everyone involved.
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.

It’s not possible to retain profit in a group captive. Clients cannot build an asset that can take more risk and make more profit over time.
Although clients must invest collateral, group captives aren’t an investment that makes a return – they’re a business that saves 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.

Mid-market captives made easy