Captives for Delivery Service Partners: Transforming Risk Management

I recently had the pleasure of joining host Joel Appelbaum on the IRMI podcast to explore how captives are transforming risk management for Delivery Service Partners (DSPs). As the backbone of e-commerce and logistics, DSPs face unique challenges that traditional insurance often struggles to address.

During our conversation, we dove into how captives empower DSPs to take control of their insurance and risk management strategies. By satisfying all coverage needs, providing cost stability and proactive risk management, captives provide a solution perfectly suited to the fast-paced and ever-evolving delivery landscape.

One highlight of our discussion was the impact captives can have on a DSP’s bottom line:

“If your company is funded appropriately and you manage your claims efficiently, you could save up to 60% of your premium if you don’t have losses. In the standard market, you could have a great year with no claims, but because the market is hard, carriers could still be raising rates.”

We explored real-world examples of how captives have not only mitigated risks and reduced costs but turned insurance expenses into profit centers for DSPs. As technology and autonomous delivery systems continue to reshape the logistics industry, captives will play an increasingly pivotal role in addressing emerging risks and creating opportunities for growth.

Whether you’re a DSP owner, a logistics professional, or simply curious about the role of captives in managing risk, this episode offers invaluable takeaways.

Are you interested in learning more about DSP-owned captives or the captive concept in general? Reach out to me today, I’d love to tell you more.

A big thank-you to Joel Appelbaum for the thoughtful conversation and the chance to share how captives are reshaping the future of risk management in the logistics industry. Our conversation can be found by clicking here, or on your favorite streaming service- Apple, Spotify or Podbean.