Captives and Alternative Risk
Captives and Alternative Risk Solutions are an innovative risk pooling arrangement whereby customers can take advantage of the economies of scale that are usually only available to larger corporations.
Homewell Insurance Services has the marketing resources available to you in order to place clients in existing captives, and look for the best captive in their industry.
The reality is that all companies are classed in “pools” from the perspective of an insurance carrier (a fundamental principle of the law of large numbers that drives insurance!). The best risks generally have low loss ratios. The worst risks generally have high loss ratios.
Captives typically consist of the “best in class” companies to band them together with other “best in class” companies to form high performing, small insurance companies. The profits from these super-insurance companies are given back to the policy holders.
If your company pays more than $250,000 annually for their Property Casualty programs and have a low loss ratio, congratulations! You might consider your own Captive, or going into the Group Captive.
A Captive or Alternative Risk Solution’s might be the best solution for your business.
Please be sure and contact Homewell Insurance Services when you policies renew!