RISK TRANSFER ALTERNATIVE WITH LONG-TERM STABILITY, LOWER COSTS AND GREATER CONTROL
With traditional insurance, the better companies subsidize the premiums of companies with higher claims. That’s just the way it works. Using a selective Group Captive eliminates the cost of such subsidies which can range from 15% to 30% of total premium. Moreover, Group Captives capture significant savings attributable to lower operational, administrative and tax related costs.
GROUP CAPTIVE ADVANTAGES
WHAT IS A GROUP CAPTIVE INSURANCE COMPANY AND HOW DOES IT WORK?
A Group Captive insurance company is a licensed and admitted, limited purpose property and casualty insurance company, owned by its members under Internal Revenue Code (IRC) Section 831(a). The Group Captive provides risk coverage insurance policies for its member owners’ companies in place of coverage through a traditional carrier. Members are generally different companies — normally from the same industry — having similar insurance needs and better than average claims experience. Members benefit directly from the Group Captive’s underwriting profits.
WHY USE A GROUP CAPTIVE?
EFFECTIVE LOSS PREVENTION AND MANAGEMENT INCENTIVES
Group Captives put safety and risk management in the forefront. Members have the incentive and realize the rewards of focusing on loss prevention and claims management. They can control costs and potentially capture the “profits” (i.e. unused premium) through dividend distributions. Unlike most traditional insurance, a percentage of each member’s premium is set aside for loss prevention and risk and claims management services. Members control the allocation of such funds according to their specific loss prevention and safety needs.
GROUP CAPTIVE COVERAGES
TAKE CONTROL, CAPTURE THE EFFICIENCIES, INCREASE YOUR BOTTOM LINE
Contact one of our risk advisors at: GroupCaptives@CherryBekaertBenefits.com to learn more about the lower costs, broader coverage and greater control that can be yours with Group Captive Insurance.
Cherry Bekaert Benefits Consulting, LLC is a Chernoff Diamond Affiliate. Chernoff Diamond & Co., LLC is a Managing Member of Cherry Bekaert Benefits Consulting. Chernoff Diamond & Co., LLC offers Investment Advisory Services through M Holdings Securities, Inc., A Registered Broker/Dealer, Member FINRA/SIPC. Check the background of this Firm and/or investment professional on FINRA's BrokerCheck. Chernoff Diamond & Co., LLC is independently owned and operated. Chernoff Diamond & Co., LLC, is a member of M Financial Group. Please visit mfin.com/DisclosureStatement.htm for further details involving this relationship.
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