The Upside of Captives

 

 

 

 

 

The Captive Advantage

As the insurance and reinsurance markets have changed over the past 40 years, one of the few constants has been the steady development of captive growth. Captives put business owners in greater control of their insurance costs, and ultimately their insurance destiny. When you join the Gunn-Mowery-administered captive, we exceed expectations as we manage the largest and most successful central Pennsylvania-based captive.

As a member of a group captive, you enjoy lower costs, improved loss control, opportunities for dividend distribution and long-term control over your insurance destiny. 

Control Over your Insurance Destiny

It’s simple. Control your losses with the support of the captive risk management team and you reduce your premiums.

Lower Operational Costs

By purchasing coverage through the captive, you have the ability to lower your operational costs. These costs are often times marked-up in the conventional market. 

Turn your Insurance Expense into Profit

Controlling losses by implmenting tigher safety controls leads to a higher potential for dividends and potentially lower premiums in the future. 

Is a captive for you?

If you check off the following criteria, the captive might be a good fit for you! 

  • Strong safety culture with safety programs in place
  • Losses are better than average for your respective industry
  • Long-term financial strength and stability
  • Minimum casualty premiums of $100,000
  • Central PA or similar headquarters

Million in Shareholder Equality

Million in Dividend Distributions

Million in Total Assets for the Members

Types of Captives

As an insurance agency with our own group captive— as well as strong relationships with some of the largest Pennsylvania and national insurers — we can evaluate your captive options so you make the right business decision. 

Group Captives

group captive is an insurance company that provides insurance to and is controlled by its members. The members can be homogeneous or heterogenous. A group captive can be established as a member-owned captive or can be created through a rent-a-captive approach.

Group captives offer:

  • The power of group purchasing
  • More control of your insurance expenses
  • Lower overhead thanks to economies of scale
  • Distribution of underwriting profits in the form of dividends or other profit returns
  • Enhanced loss control and claims administration
  • Long-term control over your insurance program
  • Stable coverage

Single Parent Captives

single parent captive is one that is owned entirely by the parent-affiliated company and/or its subsidiaries. A single parent captive allows the company to control its own affairs and design a captive that allows them to meet their objectives.

We will help you determine:

  • The most suitable location of the captive (taking into account important factors such as convenience, government attitude and taxation)
  • The costs of managing the captive
  • Securing outside service providers for engineering and claims and developing a plan for future development, so that the overall objectives of the plan are met and allow for future diversification
  • Appropriate policy issuance and reinsurance providers

Being a member in NorthStar has helped us focus greater attention on loss control and claims management, which has ultimately provided a more consistent control of our insurance cost. When we look back over the past 15 years and compare our experience to the traditional insurance marketplace, we can easily see the benefits the captive has provided. 

Jon Kessler, CFO, Gannett Fleming

To the Upside! 

Interested in the captive model for your company? Please contact us using the form below and one of our agents will be in touch with you shortly!