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Captives, Self-Insurance: What’s the fuss about?

Monday, June 4, 2018

By: Patrick Johnson, CRIS, PWCA / Practice Group Leader, Construction

If you don’t own it……you don’t control it. 

Are you interested in finding out how to turn an annual company expense into potential company profit? Joining a Group Captive Insurance Company could be the way. 

The Horton Group has partnered with Innovative Captive Strategies, a premier captive manager to help organizations employ efficient and proven alternative risk financing. Captive shareholders typically have the opportunity to receive 65% of their annual insurance premium returned in the form of distribution for ownership in a group captive. If you are dedicated to a safe workplace and have few insurance claims, a group captive could be a great long-term risk management approach for your company. 

“Wait, what is it?”

A group captive is an insurance company owned and controlled by its shareholders. Typically the shareholders are of similar-sized companies that join together to form a “small insurance company.” The captive, (small insurance company), then buys reinsurance to protect against large losses and provide policy forms and the “A” rated insurance policy required by most companies. 100% of the underwriting profits and investment income of the captive are distributed to the shareholders/policy owners. 

The captive concept is not new. Today, there are over 7,000 captives as more and more business owners exit the traditional insurance marketplace for an alternative to gain ownership and control of their insurance programs. Coverages typically provided in a group captive are Workers’ Compensation, General Liability, Automobile Liability.

“How will it benefit us?”

  • Captive members control how claims are managed
  • Loss control services are customized to your business
  • New captive members are vetted and approved by existing members
  • Stable year to year premiums
  • No insurance rate increase surprises
  • Peer groups with similar businesses are formed
  • Opportunity to receive 100% of underwriting profits


Material posted on this website is for informational purposes only and does not constitute a legal opinion or medical advice. Contact your legal representative or medical professional for information specific to your legal or medical needs.