Break Free and Control Your Insurance with Member-Owned Group Captives

For many businesses, diving into the world of captive insurance feels like trying to master a foreign language – daunting, time-consuming, and complex. It’s no wonder they often choose to stick with what they know, even as their premiums skyrocket year after year, and their insurance carriers continue to rake in profits at their expense. Yet, this reluctance to explore new options could be costing them dearly.

What if you could take control of your insurance costs and turn risk into opportunity?

It’s Time to Own Your Outcomes

At ICS, we make it easy to understand. While captive insurance may sound complex, we specialize in breaking it down – especially the member-owned group captive model.

At its core, a member owned group captive is a group of likeminded companies joining forces to create and own their own privately held insurance company. By becoming a member of one of ICS’ captives, you become both an owner and a shareholder.

Think of it like moving from renting to owning. Instead of paying rising premiums to a traditional carrier with little control, you invest in a captive where you have a say in the decision-making.

The Benefits of Becoming the Next Insurance Captive Owner

Control

With over 1,000 captive owners across the 23 ICS group captives – most of them privately held businesses – control is the biggest draw to this model. As an owner of this insurance company, you have a seat at the table driving decisions that are being made – your voice is heard! ICS is simply the captive manager working to make sure expectations are met. You get a say in the partners involved and where your dollars are going – transparency is the name of the game.

Stability

Instead of being at the mercy of unpredictable insurance markets and the volatility that comes with it, the captive allows you to stabilize your rates because your rates are primarily driven by your own performance.

Opportunity

This is two-fold between the financial and the best-in-class network opportunities.

• Financial: Whatever you’re not spending in claims and in fixed expenses out of your premium is coming back to you as a profit distribution.
• Best-in-Class Network: Becoming a captive member means joining a like-minded peer group, sharing best practices, and learning from one another.

Comprehensive Lines of Coverage in the Captive

By design, the lines of coverage we focus on in the captive space are Workers Compensation, General Liability, Auto Liability, and Auto Physical Damage. All other lines are placed outside of the captive.

Take property insurance, for instance. It’s challenging to predict or control events like natural disasters that could devastate buildings and equipment. These events come with high unpredictability and limited influence.

On the other hand, with Workers Compensation, we have extensive historical data that allows us to accurately forecast and manage these claims. By implementing better safety and risk management practices, these lines of coverage can become highly profitable for our captive owners.

In essence, it’s like having a clear roadmap for navigating potential risks, turning uncertainty into opportunity.

What Will My World Look Like in a Captive?

Not much will change – except for the upside! You’ll still work with a broker and receive policies from an A-rated carrier, just as you do now. The key difference is that you’ll take on a more predictable layer of risk, known as the captive layer, while continuing to purchase reinsurance from the carrier for catastrophic risks that exceed the captive layer.

By improving safety measures and risk mitigation strategies, you directly influence your captive’s profitability, making your insurance spend work for you.

That wraps up the basics of a member-owned group captive. If you’re curious to learn more, feel free to reach out to us anytime. We’d be delighted to continue the conversation!