Alternative Risk Marketplace
Staying ahead of the program
The alternative risk marketplace is advancing more rapidly than its traditional counterpart. More than 50% of U.S. premiums are written in some form of an alternative risk program. Horton has remained on the cutting edge by introducing clients to a variety of alternative risk options.
Group Captives
A strong and growing concept
Horton has developed a core competency in the area of captives, with a particular focus on group captives. Working in conjunction with our captive management partners, we launched a homogeneous construction group captive in 2003 and a heterogeneous captive in 2006. Both groups have experienced excellent results since inception.
Group Captive Participation Benefits
In a captive, companies gain the ultimate level of ownership and control:
- Professional partners are hand-selected by captive owners
- Captive members control how their specific claims are managed
- Loss control services are customized to meet members’ needs and reduce risk
- New members are identified and approved (or vetoed) by captive owners
Financial/Wealth Options and Flexibility
- Insurance profits are tax-deferred to the shareholder
Reduced Overall Costs
- Contributions are based on each company’s expected losses
- Premiums are likely to be more stable from year to year
- The ability to retain investment earnings and underwriting profit
- Fixed costs are controllable and can be reduced
Improved Insurance Program
- Enhanced coverage, marketability and cost control
- Forum for exchange of ideas; learn from members’ experiences
- No surprises in the renewal process; no bidding upheaval
Construction
Working in conjunction with our captive management partners at Innovative Captive Strategies (ICS), Horton successfully launched a homogeneous construction group captive in May, 2003. This group currently includes 18 contractors and more than $10 million in annual premium, featuring an earned loss ratio that is well below industry standards. Horton is the exclusive broker on this captive.
Mixed (Heterogeneous)
Horton and ICS formed a second group captive in January 2006. This mixed industry group features manufacturers, distributors, light service and other miscellaneous exposures. This captive includes 16 members and nearly $10m in captive premium.
Industries Represented:
Highlights & Features – Group Captives
- Premiums are developed based on each individual’s actuarial loss history
- Lower overall fixed costs
- Group purchasing power
- Market fluctuations are minimized
- Each member retains 100% of any underwriting profits + investment income
- Networking and exchanging of ideas with Best in Class peer companies
- Customized claim/risk control services and heightened safety awareness
- Reduction in the amount of time involved in the annual renewal process
