A letter from the President …
A fundamental question we hear frequently here at ARU is, “What makes a good group captive member or prospect”? There are a few basic requirements, and our way of answering the question might not be entirely conventional. The biggest bias toward captives for the middle market is that many brokers and insured’s think a captive based solution is only for very large corporations. Ironically, the companies that get the most value from a captive insurance solution relative to their size are middle market companies. ARU group captives are designed to provide a low risk entry into getting the savings and solutions offered by a captive insurance approach.
Some of the things that make a good captive prospect/member are:
- Your company pays $250,000 or more for their primary casualty insurance for all lines combined. ALL companies that meet this criterion may be eligible for this approach, provided some of the other criteria are met as well.
- For Health Benefits if you have 75 – 1,000 Employees and a minimum of 50 employees enrolled in the plan.
- Your company has better than average loss experience. You don’t have to be perfect, just above average in terms of the losses you have on an annual basis. ARU will analyze this for you and your broker at no charge.
- Your company must have safety as a top priority. We verify this via loss control/safety surveys of your business.
- You must be financially sound.
- You must desire to be in charge and in control of your risks and how these risks are financed. Under conventional insurance the insurance company is in charge – not you! You must get involved in managing your risk, claims, and exposures to loss.
- You should be interested in a long-term approach to doing business and financing your risk in a more efficient way.
Pretty simple, but many companies in the middle market feel they have no choice to get this kind of control. They are under the impression that conventional guaranteed cost insurance, where the insurance company is in control, is their only choice. Not so, for the right organization, an ARU group captive approach is a much better solution!
Best Regards,
Chris