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.
Why Consider a Captive?
- Control Over Your Business Insurance Destiny. It’s simple — control your losses, with the support of the captive risk management team, and you reduce your premiums as well as the long-term cost of risk.
- Lower Operational Costs. By purchasing coverage through the captive, you have the ability to lower your operational costs — costs that are often times marked-up in the conventional market.
- Turn Your Insurance Expense into a Profit Center. Controlling losses by implementing tighter safety controls leads to a higher potential for dividends and potentially lower premiums in the future.
- Enhanced Safety and Alternative Risk Management. Improved loss control and greater awareness of the factors that can give rise to losses may reduce or prevent losses in the future. Desktop availability of claim reviews and dedicated adjusters can potentially reduce the dollars associated with a loss. Loss Prevention and proactive claims management potentially lead to premium savings.
What Attributes Should a Company Have in Order for a Captive to be a Viable Consideration?
- Firms with a strong safety culture. Management teams committed to safety with strong safety programs in place
- Losses that are better than average for your respective industry;
- Long-term financial strength and stability;
- Minimum casualty premiums of $100,000, depending on the captive program.
Managing Risk With a Captive
A Captive can be used along with more traditional coverage to protect a business from many everyday risks. With a captive, the owner can direct profit and other capital, including overhead, which might otherwise go to an insurance company.
In addition, the premiums paid to the captive may be by tax-deductible, meaning the alternative risk solution offers some financing benefits.