Captive Insurance Programs
Many companies are looking for alternatives to standard insurance as a way of both protecting their assets and increasing their profitability. One option is an insurance captive: a closely held company that provides insurance to and is controlled by its owners. Seubert & Associates is well versed in captive programs and can help you determine if this is the right vehicle for your company.
Weighing the Benefits
If your paid and reserved losses over the last five years were less than your paid premiums, a captive may be an alternative to your traditional insurance program. In a captive, you keep unused premiums and earn return off the investment of those dollars. In addition, your premium is based on your individual loss history versus that of your industry.
But a captive program is not for every company. We recommend that a company have:
- Minimum annual casualty premiums of $150,000
- Better than average loss experience
- Long-term financial strength and stability
- Management teams committed to safety
- Proper loss control practices in place
- A long-term perspective on risk management
Customizing Your Solution
If a captive program is a good fit for your company, we’ll help you determine whether you should create your own captive or become a member of an already established captive group. Existing captive options include both heterogeneous and those focused on particular industries.
At Seubert, we have experience in all types of captives and can help you make the most of this alternative approach to insurance.
