Captive Insurance & Risk Management Programs

KMRD can help you evaluate whether you a good candidate for a captive insurance program.

Better Coverage

We take the time to thoroughly review your policies and deliver the right risk and insurance coverage for all your needs.

Better Access

We provide a secure and collaborative environment offering 24/7 access for everyone on your team around the globe.

Better Control

We perform a disciplined review across your entire operation to understand all of your company’s exposures.

Better Delivery

We take the time to get to know your company and then assign a team that cares about getting it right.

What are captive insurance programs?

Captive Insurance Programs come in many different shapes and sizes.  Each type has benefits and weaknesses but all give participants access to underwriting profits in exchange for taking on measured risks.

Are you a good candidate for a captive?

Depends. Some will tell you need to be a large company paying in excess $1M for traditional insurance today to consider this approach.  This is not true. There are captive programs developed specifically to enable smaller companies to become part of a group of like minded partners with a goal of accessing some of the profits the insurance companies have been earning on their excellent loss experience.  Companies with premiums in the $100k to a $1M can be eligible.  Of course the risks / rewards become more prominent with larger programs.

Most captives are risk financing vehicles for corporations and high net worth individuals where the conventional insurance market is unable to provide sufficiently flexible, stable and financially attractive terms.

Captive can be established by individuals, corporations or even associations. Many captives have been formed by groups who, when pooling their risks together, may obtain better coverage and terms than they could negotiate individually from a traditional insurance company.

Can you achieve a similar risk / reward structure in the traditional insurance marketplace? 

Similar?  Yes.  Exactly the same? No. Companies paying in excess of $1M for their general liability, auto, and workers compensation programs combined may be able to negotiate pricing structures with their carriers including a level of self insurance delivering the ability for lower costs if losses are good in exchange for taking the risk of higher costs in poor loss years.

They key is to employ an agent who has the expertise in developing these alternatives for you.  They should be able to educate you on your “loss picture” and clearly communicate the risks and rewards of such a program.  They should also test the marketplace periodically to confirm the structure continues to be the best alternative for you.

What Role Does KMRD Serve?

KMRD is a risk management consultant and commercial insurance broker. We serve as an independent resource in evaluating risk transfer structures.  We have extensive experience in performing reviews on existing captives or performing feasibility studipot of golden coins collected with help of metal detectores so our clients understand the potential risk and rewards before they embark on a costly and time consuming process.

If our assessment confirms a captive approach is attractive to you, KMRD will assist you with working with select experts in the industry to assist you in accomplishing your goal.

KMRD is one of a very select group of brokers with access to several well-funded property & casualty insurance captives.  We can also assist you in exploring a captive approach to your employee benefits through our partnership with Pareto Captive Services.  These alternative risk financing techniques are attractive for companies with a risk appetite and the desire to access underwriting profits and tax advantages as an owner of the insurance entity. [MAC Casualty Ltd., Churchill Casualty Ltd., Elite Distributors Insurance Company (EDIC), Pareto Captive Services]

Types of captives 

Risks & Advantages of Captives

Advantages

Risks

 

We’d love to help you evaluate whether a captive program may be beneficial to you. Call us at 866-957-KMRD (5673) or send us an email via the contact form below.


For a consultation regarding captives, please fill out the form below:

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