The use of captive insurance companies has increased year after year over the past two decades. Captives are wholly-owned insurance subsidiaries that provide funding vehicles for their parents’ risks. There are now more than 6,200 captive insurers worldwide and more than 90% of Fortune 500 companies employ of some type of captive insurance company arrangement.
The advantages of captives are multiple and can be significant:
- Potential short and long-term cost savings
- Customized employee benefits designs and property/casualty programs
- Enterprise risk financing applications
- Potential tax advantages as compared to conventional insurance
Spring is a recognized leader in risk funding strategy. There is no other firm out there that is as dedicated and flexible in determining if a captive is the right fit for you and then providing you with the right solution from development through implementation.
Is a Captive Right for You?
At Spring, we use a consulting process we call Vision – Insight – Results to assess the feasibility of captive funding for your insurance lines.
- Vision is the goal-setting and fact-finding part of the assignment
- Insight is the analysis of data, development of alternatives, and selection of the solution that will deliver the desired outcomes
- Results is the implementation of the preferred solution, as appropriate
Who Should Consider a Captive?
- Good risk management
- Long term commitment
- Financially sound
- Driven by an interest in financing assumed risk positions
- Reasonably predictable insurance risk
Spring’s Captive Professionals
To help ensure the success of our consulting engagements, Spring has under its roof a full arsenal of resources, tools and strengths to benefit our clients. These include:
- Captive Specialists. We have expertise in developing captive insurance strategies for our clients that seek cutting edge alternative risk financing solutions.
- Recognized Experts. You want the best in the business — people who have worked with clients of all sizes to solve problems creatively. Our consultants are recognized leaders in the design and funding of captive insurance solutions, and can bring to bear their collective knowledge, insight and industry connections for your project
- Strategic Solutions. You need answers that will be long-term solutions — ones that take into account not just the problem of today, but to anticipate and plan for the challenges your organization will face tomorrow
- Effective Teamwork. You need a committed, proactive team with the ability and resources to deliver service. You want experts who can transfer their knowledge of complex issues to the your team easily and effectively
- Predictability. You need straightforward advice tailored to your specific business issues. You want no surprises in both our working relationship and the results we provide you
- Focus on Business Objectives. You need a team who understands your business well and is dedicated to delivering services that add value to your business — a firm that understands the complexities of issues ranging from financial forecasting to actuarial funding and its impact on short- and long-term budget and financial plans