Gaining control, unlocking value.
For many larger organizations, traditional property and casualty insurance programs are not able to unlock value of investments made in risk management. When this is the case companies often turn to alternative risk finance options to take more control of their insurance dollars. Use of “captive” insurance companies, which are owned by it members, has continued increase until they now represent more than 50% of commercial insurance dollars spent in the U.S. The fastest growing segment of this alternative market is group captives, which is the approach favored by many small to mid-sized companies looking to gain more control of their risk dollars.
Fortune 500 companies have used captives for decades to gain control of their insurable costs. Smaller companies can gain similar advantages through participation in a group captive. Once only a consideration during “hard” insurance market cycles, group captives are now recognized as a preferred financing option for well run companies in any market condition. A group captive is formed when companies join forces to create their own insurance company. A properly managed group captive creates a “preferred pool” of top companies with excellent risk management practices. This group can share risk more cost effectively then being part of the general insurance market and still protect themselves from catastrophic claims through the group purchase of reinsurance. The “profits” from good control of claims are kept by the member-owners not an insurance company.
SilverStone Group represents the top captive mangers in the world which include hundreds of individual group captives. We have also been asked to present our expertise at various events around the country. SilverStone Group takes an independent approach to assisting our clients with analysis and implementation of a group captive program. We provide assistance every step of the way from feasibility analysis and program selection to complete risk management outsourcing once the program is implemented.