The Benefits of Working With a Group Captive

Many businesses can benefit from working with a member-owned group captive. When your business joins, you are working with a group of like-minded companies under a structure that provides more stability and lower costs while reducing the risks of a traditional insurance cycle.

Minimizing Risk

With the higher numbers involved in a group captive, members can expect a better overall claims experience. Also, the policies can be specifically tailored to the needs of high-risk industries, which offers coverage individuals may not be able to get on their own while simultaneously narrowing the range of coverages needed. The stability that this creates lowers the overhead needed to meet the costs of claims. Greater risk retention can lower costs in the long run, making it worthwhile for everyone.

Sharing Best Practices

Members of group captives share profit but they also tend to share losses.  Everyone wants to feel like they’re getting their fair share of the benefits of the group, which means no company wants to carry more of the burden of claims losses than others. Because of this structure, it is in their best interest to share best practices with other members. They can work together to share safety protocols and other habits they use to reduce the number of claims they have to file.

Building Group Culture

When members run the group captive, they have the opportunity to team up with companies with similar values and goals. While members may not share the same industries, when they operate within the parameters set by the group captive, they can reap the benefits of it. The groups are often run by a committee or team that tackles issues such as long-term planning and risk control measure development.

There is a coverage option that offers stability and support for those in high-risk industries or those who simply want to lower insurance premiums without sacrificing service. If this describes your company’s needs, you may benefit from a group captive.

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