BakerHopp specializes in group captive insurance, a risk-financing alternative that fosters cost savings and improved coverage for safe businesses.
A group captive insurance plan puts you in the driver’s seat.
For many companies, especially high-performing mid-sized organizations, traditional commercial insurance programs often fail to charge fair premiums for the company’s stellar performance. A member-owned group captive is an insurance company that provides insurance to and is controlled by its owners. Unlike a conventional insurance company where all profits are retained by the insurer, regardless of a company’s risk and loss, a captive enables the insured to pay lower premiums—and gain rewards—based on financial performance. Participating as an owner of a captive empowers best-in-class businesses to thrive with a higher degree of control of premiums, claims, coverage, and other facets of their commercial insurance.
Unlock better business outcomes with the advantages a captive plan can offer:
Premiums based on performance
Insulation from market conditions
Lower operating costs
Enhanced loss prevention and claims management
Unbundled service provider costs
Emphasis on employee safety
Gain returns on your investment.
In a captive, a company’s insurance premiums are determined by an independent actuary based on its individual claims experience. Captive owners can think of their premiums as an investment of capital versus a business expense; instead of allocating money to an insurance carrier, which offers no return on your dollars, members fund reserves for paying claims.
Whatever isn’t used can grow through investment and generate more cash flow over time as premiums decrease because of lower claim activity. Not only does the company receive the coverage it needs, but also benefits from any underwriting profit earned by the captive.
Contrary to popular belief, a group captive is not a pooling arrangement. Each member is a freestanding entity but benefits from the support and financial performance of the group. Fit factor is crucial and BakerHopp can help determine if your company belongs in a group captive.
Work with the experts.
Captives are a complex risk-financing alternative that require the expertise of an experienced captive solutions team. BakerHopp has over 10 years of experience working with group captives and specialize in determining whether a captive is in your company’s best interest, as well as which type of captive is the best fit.
Acting as a liaison between the provider and the insureds, BakerHopp contributes to the success of best-in-class middle market companies by facilitating their placement into group captives. Our long-established relationship with Captive Resources, one of the world’s leading captive managers, and a proven track record with two high-performing heterogenous group captives (MAC Casualty, Ltd. and Griffin Casualty, Ltd.) ensures our clients have access to industry-specific guidance and resources.
Explore your potential.
If your management team is committed to a safe culture, you have a claims history that is better than average for your industry and history of long-term financial strength and stability, you are an ideal candidate to explore captive insurance insurance.