Great claims history
Excellent workplace safety program
Highly preferred overall risk
If you answered YES to all 3 of these, it may be time to exit the traditional market and enter a Captive program that rewards you accordingly.
By providing captive and alternative risk solutions, Horton offers clients an opportunity to take control in a variety of ways:
Thankfully, over 10 years ago, someone much smarter than me saw a shift to a captive insurance program as a great strategy, even though it was completely foreign to our company and industry. The road to gain acceptance into this program helped us improve upon a strong safety culture, and being actively engaged with others who share in our risks continuously drives safety to new levels. It is extremely gratifying to see our employees put in a full day and return home safely to their families. Even better is being able to share our distributions from strong performances with our families who made it possible.
If you don’t like improving your safety culture and don’t want a competitive advantage that can reward your employees, then a captive is not for you. But if your interest is peaked or even just curious, call Horton now.
- Ronald M. Guzior, CEO/President, Richards Building Supply
Group Captives can be as small as 10-12 members or as large as 300+. The Group Captives that Horton populates range in size between 20-50 members, which we feel is the captive sweet spot. They are large enough to have scale and stability, but small enough that every member of the captive has a voice and the group can remain close-knit.
Group Captives tend to be either Homogeneous groups or Heterogeneous in nature. Homogeneous captives may feature all trade contractors (as an example) while heterogeneous captives typically attract a more wide variety of risks (manufacturers, distributors, service providers, light contractors, miscellaneous).
The majority of Group Captives will provide members with insurance policies in three distinct areas – Workers’ Compensation, General Liability and Automobile. It’s usually not mandatory for a member to place all 3 lines of coverage in the captive, but Workers’ Compensation is almost always included. Note that members will continue to purchase several other lines of coverage in the traditional market, including but not limited to Property, Umbrella/Excess, Pollution and Employment Practices Liability.
Once loss funds (premiums) are paid, they sit in an investment account until needed for a claim. During this time period, the member will earn investment income on these funds. This is a significant source for profitability by insurance companies operating in the traditional market.
A Group Captive uses an annual actuarial methodology to determine pricing. This eliminates the significant market swings that we often see in the traditional market. In a Captive, if you perform well, upfront premiums will go down over time, even if mainstream pricing is increasing for those not in a captive.
With captive insurance, the members purchase the necessary reinsurance as a group. Thus, you are able to utilize purchasing power and negate much of any negative trend occurring in the traditional market space. Additionally, you gain access to some of the safety and claims practices being practiced by dozens of above-average business owners/operators. Joining a strong Group Captive can take your company to the next level.
Q – How large do I need to be to qualify for a Group Captive?
Q – How much of my captive premium can I turn into a profit?
Q – Will my premium in the captive be more or less than I’m paying today?
Q – Is it difficult to get into a captive?
Q – I heard that in a Group Captive everyone shares risk and you end up paying for a lot of claims from the other members?
Q – Can you be assessed in a Group Captive?
Whether the next idea originates from a new captive concept, a strategic acquisition, or taking the Healthcare Practice to the next level, Jason thrives on keeping The Horton Group on top and always pushing for more.
The most important concept that Patrick Johnson tries to communicate when meeting with existing and potential clients is the difference between price and cost.