W^H? The Holmes Murphy Blog

  • You Don’t Have to Be Held ‘Captive’ by Traditional Insurance

    Can I get a show of hands — how many of you think group captives are only for the large premium payers ($300k+)? If we, as in you, me, and all the other readers, were in a meeting room together, I’d venture to guess many hands would be raised.

    In reality, though, that is a big misconception. We can offer captive insurance ownership to the smaller premium payers — those who pay as low as $100k in premium across the captive lines of General Liability, Workers Compensation, and Auto Liability.

    Join an Industry Specific Group Captive Insurance

    What does this have to do with c-store- and petroleum-related companies? Well, I’m excited to say we’re starting a new homogeneous group captive for this industry in the next several months.

    What are the benefits of captive insurance?

    • Allows you to get better from a loss control perspective. This means more dollars back in your pocket.
    • Allows you to take control of your insurance program.
    • Makes your insurance expense a profit center. Quit cutting checks and letting the insurance company profit off you!

    Those are just a few of the benefits of captive insurance.

    Let me guess…you don’t want to share risk with other companies and be on the hook for their losses? Not only do you do that now in the traditional insurance market (with strangers), but our group captives will actually show you that extremely low percentage of shifting and sharing among members, especially in homogeneous groups in the same industry.

    For my readers who like to see the numbers, check these out:

    • Our group captives average a 21 percent return on premium.
    • Shifting and sharing in our captives averages just 3 to 5 percent of premium, which can be offset by the investment returns of 3 to 6 percent on average.

    Again, Holmes Murphy and Innovative Captive Strategies (ICS) will be adding to the 15 group captives we already have. The new captive insurance group — strictly for c-store- and petroleum-related companies — will cater to smaller premium payers. And guess what, we’re looking for founding members! If you’re interested, let me know. Or, if you simply have questions about group captives, you’re in luck. We’ll be hosting a Group Captive 101 webinar on Wednesday, February 17, at 1 p.m. CT. Taking part is a great way to learn the ins and outs of the opportunity. Register here!

    Additionally, I’m available any time to answer questions. I’d love to hear them or your thoughts. Comment below and we can chat!

    Published on: 01.25.16

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You Don’t Have to Be Held ‘Captive’ by Traditional Insurance