Published: 17-Apr- 2011 | Product Category: Other
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A group captive offers an alternative insurance structure for best-in-class companies in the construction, food and beverage, hospitality, manufacturing, real estate, retail & wholesale, service, and transportation industries.
A group captive is an insurance company owned by its participating companies. Over the last 20 years participants in group captive facilities have more than doubled. Companies that join group captives are seeking the advantages of cost savings, insulation from the market cycles, greater ability to manage risk, plus they have the opportunity to share in investment income and underwriting profits.
Advantages of a Group Captive
Group captives provide several advantages:
- Reduced insurance costs: Premium pricing formulas and group purchase arrangements reduce premium costs to member companies
- Less pricing volatility: The captive structure limits a company’s exposure to market risk. It is therefore possible to predict, more consistently, future costs.
- Opportunity to share in capital investment income and underwriting results: Profits (and losses) related to underwriting and capital investment results are shared by the member companies.
- Greater control in managing risk: Each captive member company holds a seat on the board and is able to participate fully in all decisions regarding claims and risk control.
Who Should Participate in a Group Captive?
Ideal candidates are financially solid, best-in-class companies with an entrepreneurial background where the top executives want to achieve greater control over risks and basic insurance costs.
Marsh is a leader in the captive field. Marsh manages a over 1,100 captives with over $7 billion in premium. A Marsh managed group captive is able to take advantage of Marsh’s specialized resources in:
- captive design and reinsurance placement;
- actuarial services;
- preventing losses and managing losses; and
- captive management and regulatory expertise.
Group Captive Practice
The Marsh Group Captive Practice works with over 500 clients in various group captives. The Group Captive Practice is available to assist companies in determining if a group captive would benefit them.
Tuesday, August 09, 2011
Marsh offers four group captive solutions in the United States. We have a heterogeneous group captive, a trucking/transportation captive, a general contractor captive, and a heavy highway construction captive. With these four group captives Marsh is able offer solutions for 60% to 70% of the risks Marsh will encounter in the United States.
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