Many business leaders are now asking themselves if this is the right time to own a captive insurance company. They have heard how successful captives have been in lowering premium costs, increasing coverage, accessing new insurers and controlling escalating health insurance costs.
Yet, owning and funding a captive still seems too costly for some businesses on an individual basis or they are part of an association that likes the captive approach…enter group captives.
In a number of industries, employers have found that banding together to collectively fund selected risk in a group captive is an excellent way to control cost and increase plan control. Whether they exist to cover liability risks and/or benefit risks, group captives generally offer a number of advantages including:
- Cost savings through pooled purchasing power on the risk and administration side
- Reduction in need for captive to purchase reinsurance protection
- Joint fixed cost savings
- Joint management of first dollar claims
Additionally, group captive members can also enjoy the following benefits:
Spring has years of experience extending our industry-leading innovative captive solutions to groups seeking to finance their risk in captives. Please contact us to find out more about the services we offer to groups and to discuss a feasibility study to determine if a captive is right for you.