Captive Solutions
ALTERNATIVE RISK SOLUTIONS
Turn a cost center into a profit center
Captive insurance solutions help businesses take greater control over their risk management programs by self-insuring risks as an alternative to purchasing commercial insurance. The goal is not only to reduce external insurance costs but also to capture profits from maintaining good loss experience.
The Baldwin Group’s captive solutions team has decades of experience creating and managing every aspect of captive programs for businesses across many industries. Our approach is to understand a client’s full risk management picture and develop a captive solution that will deliver the best financial impact for their business.
ELEVATED EXPERTISE AND SERVICES
Managing and developing captives for your unique needs
Delivering exceptional service to your business throughout the lifecycle of your captive program is our priority. From the initial feasibility analysis to regulatory compliance and claims management, you’ll receive guidance from our highly experienced team every step of the way. Our solutions feature onshore and offshore domiciles and enable access to reinsurance capacity and fronting arrangements with highly rated insurers.
We’ve developed captives for coverage lines that range from general liability, professional liability and workers’ compensation to health benefits and property. Our innovative structures include specialty programs like tenant liability and security deposit insurance for the multifamily housing industry and more traditional captive structures that leverage our considerable expertise to produce significant annual return on invested capital for our senior care industry clients.
Captive management services:
- Feasibility Study
- Business Plan Development
- Licensing and Regulatory Compliance
- Preparation of Reports for your Accountant and Tax Preparer
- Underwriting and Policy Issuance
- Claims Management
- Corporate Governance
- Annual Renewals
RISK FINANCING STRUCTURES
Putting the right captive in place for your business
Every client is different. This is why our approach is one to one – providing solutions customized for your exact needs. Explore some captive options:
Single-Parent Captive
This type of captive insures the risks of related companies and is owned and controlled by the related company or its affiliates. It is often the choice of larger insureds with more sophisticated risk management profiles. This is the most common form of captive and can be organized under the laws of any jurisdiction with a captive insurance statute.
Protected Cell Captives
These tend to be smaller captives that are organized as distinct, segregated legal entities operating under the umbrella of a larger licensed “core” captive insurance company. This structure allows the cell owners to tailor their insurance coverages to their specific operational needs while taking advantage of cost savings and risk management controls achieved through collective bargaining power and shared risk strategies.
Group Captives
This type of captive is a licensed insurer or reinsurer that is formed and owned by a group of insureds with a common trait, for example type of business or with a specific insurance need in common. It provides a vehicle for insureds that may be too small to effectively assume a large risk position within their own single parent captive arrangement. Participants in this type of captive can share or pool their insurance risks and efficiently spread the fixed costs of the captive among its many members.
Risk Retention Groups (RRG)
RRGs are liability insurance companies owned by its members that are formed under the auspices of the Federal Liability Risk Retention Act. RRGs allow businesses with similar insurance needs to pool their risks and form an insurance company that they operate under state regulated guidelines. RRGs may be formed under a state’s captive or traditional insurance laws and even if domiciled in one state, it may do business in any other state by completing a registration process and designating the state’s commissioner as agent for service of process. Unlike other captives, RRGs may write directly in states where they are registered without obtaining a commercial insurance license.
CAPTIVES BENEFITS
Reap the rewards for your business
Establishing a captive often provides significant benefits to organizations and risk management professionals. The advantages of establishing a captive can include:
- Coverage tailored to meet specific needs
- Greater control over claims
- Reduced operating costs
- Control of cash flow
- Potential tax benefits
- Funding, underwriting and risk management flexibility
- Access to the reinsurance market
- Incentive for loss control
- Capturing of underwriting profit
- Pricing stability
- Investment income
- Potential additional profit center
Best in class
technology-enabled service
Our partners and clients count on us to deliver exceptional service through a dedicated team that makes rapid resolutions a priority. We simplify the insurance experience through our advanced technology platform that supports every phase of the policy lifecycle.