Comprehensive Captive Solutions for Self-Insurance

 

Businesses are increasingly turning to captive insurance solutions for their ability to tailor coverage to specific needs, substantially reducing costs, and providing greater control over risk management strategies. Captives offer opportunities for underwriting profits, stability in insurance pricing, and access to reinsurance markets. Additionally, captives may offer tax benefits and enable businesses to establish long-term financial planning with certainty. Depending on loss ratio performance, within 3-5 years, insureds are paying themselves dividends from excess premiums which is unique to captives. Overall, the appeal of captive insurance lies in its flexibility, cost efficiency, and capacity to enhance risk management practices, making it an attractive option for many businesses seeking to mitigate risk effectively.

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Captive Insurance Explained

Captive insurance represents a sophisticated form of self-insurance. It involves a company establishing its own insurance subsidiary, known as a captive insurer, to cover its own risks. This approach allows for:

Ownership and Control

The parent company fully owns and controls the captive insurer, making all decisions regarding operations, management, and underwriting.

Customized Coverage

Captive insurers provide coverage tailored to the specific needs and risks of the parent company, covering a broad spectrum of risks such as property damage, liability, and employee benefits.

Enhanced Risk Management

Companies gain significant control over their risk management, including claims handling and loss control measures, offering a proactive approach to mitigate risks.

Cost Efficiency

Operating a captive can lead to significant cost savings through reduced insurance premiums and administrative expenses.

Tax Benefits

 Depending on the domicile, captives may enjoy favorable tax treatments, enhancing financial efficiency.

Regulatory Compliance

Despite enjoying certain freedoms, captives must adhere to the regulatory standards of their domicile, ensuring financial stability and integrity.

Overview of Group Captive Solutions

Group captive insurance allows unrelated companies to pool resources, sharing risks and rewards. This collaborative approach provides:

Diverse Ownership

Companies across various sectors join forces, sharing ownership based on contributions or participation levels.

Risk Diversification

By pooling a wide range of risks, group captives minimize individual risk volatility, promoting stability.

Customized Solutions

Members enjoy tailored insurance solutions, addressing unique risks and industry-specific challenges.

Cost Advantages

Collective management of risks leads to reduced premiums and enhanced control over insurance costs.

Collaborative Risk Management

Members benefit from shared insights, best practices, and comprehensive risk mitigation strategies.

Regulatory Adherence

 Group captives are rigorously regulated, ensuring a solid foundation for risk sharing and financial management.

Types of Captive Insurance

Casualty Captive Insurance

Casualty Captive focuses on liability coverage, pooling resources from various companies to manage risks like workers’ compensation and general liability. This collaborative effort allows for customized policies, shared expertise, and greater financial predictability.

Coverages Include

    • Workers' Compensation
    • General Liability
    • Automobile Liability & Physical Damage

    Medical Stop Loss Captive

    Medical Stop Loss Captive Insurance aids self-insured employers in managing the financial risks of health benefits, offering stop-loss coverage for catastrophic medical claims. This collective approach fosters stability and financial rewards.

    Property Captive Insurance

    Companies unite to insure against property damage and business interruption, benefiting from pooled resources, risk sharing, and collective risk management, enhancing control over property insurance costs.

    Coverages Include

      • All-Risk Property Damage and Business Interruption
      • Boiler and Machinery
      • Flood and Earthquake (optional)
      • Contractors’ Equipment and more

      Heterogeneous & Homogeneous Group Captives

      Learn about the two main types of casualty group captives.

      Homogeneous Group Captives

      Homogeneous captives are comprised of member companies from the same industry. Examples include general contracting and construction, trucking/transportation, roofing, agri-business, oil and gas, and temporary employment agencies. Given that members have similar insurance and risk management needs and concerns, coverage and loss prevention programs can be customized to the captive’s specific industry.

      Heterogeneous Group Captives

      Heterogeneous captives include member companies from diverse industries, including (but not limited to) select construction and manufacturing classes, retail, wholesale, distribution, and specialty trade contractors. The risk diversification in these captives achieves a greater spread of risk.

      The Advantages of Group Captive Insurance

      Embrace control over your premiums with group captive insurance. Tired of unpredictable insurance market fluctuations and opaque premium costs? Group captive insurance puts you in charge, offering a transparent, equitable way to manage and finance your risks. Benefits include reduced operating costs, immunity from market volatility, and improved risk control.

      Eligibility for Captive Insurance:

      • Minimum annual premiums (WC/GL/AL) of $100,000+
      • Commitment to safety and risk management
      • Financial robustness
      • A strong desire for control over insurance and risk management programs

      Why Choose Captive Insurance?

      Control, Savings, and Security

      Captive insurance is not just about saving on premiums; it’s about investing in your company’s future. With benefits like investment income on reserves and capped catastrophic claims, captive insurance offers a financially prudent, highly customizable, and control-oriented approach to risk management.

      Diverse Industries, Unified in Risk Management

      Our group captive solutions serve a wide array of industries, highlighting the versatility and adaptability of captive insurance to meet varied needs and challenges.

      The Millward Agency, Inc. Testimonials

      Hear from our clients in the automotive industry who have steered their businesses toward stability and growth with Millward Agency’s insurance solutions. Our case studies demonstrate our commitment to providing unparalleled support and protection, proving that no challenge is too big when you have the right insurance partner.

      Kurtis ThorntonKurtis Thornton
      18:38 16 Jan 22
      Very helpful and nice people, a great place to get your insurance needs taken care of.
      Christopher LymanChristopher Lyman
      14:48 26 Oct 19
      Finally, I don't need to ever look for another insurance agent. The Millward Agency handles my personal and business insurance. Always helpful with my questions and quick to respond to my emergencies. The Millward Agency Rocks!
      Markusz SudozMarkusz Sudoz
      19:03 19 Jul 19
      Every time I go to my broker, Ed Caceres @ the Millward Agency, he always finds me the best insurance rates on my real estate properties. Ed is great, always extremely responsive and understanding of the industry. In the past I would go do my own insurance shopping and spend hours on hours to get the best rate, now I do not even bother shopping around I just call Ed and he always has the best pricing. In the beginning I got a quote from Ed then shopped around, now I have learned to not even waste my time. Ed @ Millward Always saves me hundreds of dollars. 110% on customer service, 100% on pricing!!! A+++
      Mobility SolutionsMobility Solutions
      19:09 25 Jul 18
      Everybody!!!!! is Great to work with when ever I need anything which is almost monthly.Linda
      carlene klebecarlene klebe
      20:01 22 Jun 18
      My former insurance agent and friend recommended Ed Caceres of Millward Agency. Within hours of having given Ed a call, I had quotes and was decided to go with his carrier. He was professional and answered all my questions. I’m happy to have done business with Ed and Millward Agency.
      John CourtneyJohn Courtney
      16:20 11 Jun 18
      Business or Personal this is who you want - Personal service from their Team is amazing, treat as though you are their only client.* Business - Review policy/coverage every year. Not limited to one or two insurance providers. Recommend changes, not necessarily to save money (although it is available) provide additional coverage. Three months later our additional coverage cost $150 on a $15000 claim. For years we were not covered! They are not limited to one or two insurance providers as our previous agent.* Personal - couple of claims were handled like we were their only client. They bundled coverage in such a way to save $2100 a year for a family of four and kids in college.***Will continue to recommend to business colleagues, friends and family***
      Karen CarterKaren Carter
      16:01 08 Jun 18
      Our company has been working with Millward Agency for many years.They have been the best insurance company I have ever worked with.The staff is always very informative and very professional. Our insurance needs which include general, auto and worker's comp are very complex. Millward is able to handle and update all of our needs at any time of the year. I really like the fact they get back to you very quickly! They are very knowledgeable and caring we never think of going elsewhere. We will definitely be customers for years to come. Thank you Millward Agency!
      Chad StottChad Stott
      17:56 07 Jun 18
      Wade and the Millward team have been consistently reliable, prompt, knowledgeable and a pleasure to work with. Wade and his crew have guided us through our ever growing needs and we attribute our success to the partnerships we have forged with organizations like The Millward Agency. We look forward to many more years working together.
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      Ready to accelerate your business’s security and success? Contact Millward Agency today for a personalized insurance quote. Our team of experts is here to guide you through the process with ease and confidence, ensuring your business is covered, no matter what lies on the road ahead.