Group Captive Overview

The Problem – Starting Point• Newer industry, not well understood by insurers• Pricing appeared high relative to risk• Industry focus on safety and loss control not given

credit by underwriters• Individual companies willing to share information

within industry to improve safety• Accounts services by local brokers, little synergy in

market• Cost prohibitive to own individual captive

The Benefits - Group Captive• New competition (self-insurance)… led to…• Premium rate reduction… led to…• Investment in safety and loss control… led to…• Reduced losses… led to…• Underwriting profits returned to group… led to…• Expanded coverage… led to…• High retention rate… led to…• Long-term market driven solution… and a fun group

• Find like minded companies/people• Share a common friend (or enemy)• Establish main objectives of program

oFocus on safety / loss controloPremium reductionsoCoverage term expansions

Establishing a Group Captive