Captive insurance is an alternative to traditional corporate risk management that allows group members to insure their own liabilities and keep a portion of unused premiums. For responsible businesses with relatively few annual claims, captives offer a greater degree of financial control and additional revenue through the refunded premiums.
Although the concept has been around for more than 60 years and is a popular choice among Fortune 500 companies, many medium-sized businesses are new to understanding the benefits of a group captive plan.
If you operate a fiscally responsible, people-first, safety-minded organization with traditional business insurance, you’re likely overpaying. You work hard to mitigate risks, but 100% of your insurance premiums go to an outside corporation and never return, even in the years you have few or no claims. Yet as much as you may want to cut out insurance altogether, you don’t have the cash reserves to self-insure.
Group captives solve this problem. Like-minded organizations pool their resources to create their own licensed insurance company that maintains control of unused premiums. Captives write their own policies and make their own risk management decisions, usually resulting in lower overall costs and reduced volatility in annual insurance payments.
William Blount & Associates is one of the leading outsourced risk managers for captive insurance in the Southeastern United States. We work with qualified businesses to conduct comprehensive feasibility assessments and broker membership into existing captive groups.
Group captives determine their own policies. You have a say in how your insurance premiums are used.
Access investment income and manage your risk exposure to align with industry changes.
When you prioritize safety and smart management, you save on insurance costs through refunded premiums.
William Blount helps you find a captive insurance group that meets the unique coverage needs of your business and satisfies your risk tolerance. You’ll have more control over how your needs are insured, increased cash flow flexibility, and access to unused funds as passive profits or reinvestments. Captive members can see up to 60% of their annual premiums returned. Plus, as your outsourced risk managers, we’ll handle all paperwork.
Complete Feasibility Analysis
Find the Right Fit
Join the Group Captive
Captives can be a profitable insurance solution, but they aren’t ideal for every organization. We’ll conduct a complimentary feasibility study to assess if a captive solution is advantageous for your business.
If you decide to move forward, we’ll identify captives well-suited to your current liabilities and long-term growth objectives. Group captives are either homogeneous, where all members work in the same industry and can tailor coverage to their specific field, or heterogeneous, creating a diverse portfolio with a lower risk profile.
Finally, we help you join the right captive for you. We’ll stay with you to advise on financial matters and help position your business to make the most of this opportunity.
William Blount Insurance Advisors is an independent insurance agency headquartered in Knoxville, Tennessee. Our innovative, analytical approach to business insurance helps us create practical solutions for companies of all sizes. We serve clients from Tennessee and Kentucky to Western Virginia to the Carolinas to Northern Georgia and Alabama and beyond.
We’re one of the region’s few agencies with captive insurance expertise tailored to mid-market and emerging businesses. Unlike some consulting firms who only specialize in specific captive structures, we’re generalists who help each client find the best captive for them.
Our senior advisors have decades of experience working with industries including:
If you’re a safety-conscious business leader in an industry with traditionally high insurance premiums, you could qualify for a member-owned group captive. Don’t let a third-party corporation hinder your growth.
It depends. For businesses with low risk profiles and relatively small annual insurance premiums, a captive solution may not provide significant savings. If your company has a better-than-average claims history in an industry that traditionally has a higher risk profile, captives are likely to be a good fit. When you work with William Blount & Associates, we’ll conduct a free feasibility study to determine if you’re well-positioned to benefit from a captive solution.
Technically speaking, self-insurance is not insurance. A self-insured company sets aside reserves in a savings account to use when casualties occur. Group captives are small insurance companies and have access to other financial safeguards such as wholesale reinsurance markets. Talk to an expert to understand the specific risk profile for your industry and business.
Traditional insurance companies make money by collecting more in premiums than they pay out in claims. With a group captive, members keep their unused insurance premiums instead of giving that money to a third party. Additionally, premiums paid into the captive are invested, and captive members benefit from the return on investment as opposed to the insurance carrier receiving those dividends.
Yes. As with traditional insurance, policies are created each year. While you can leave a captive at the conclusion of a policy term, captive membership typically becomes more profitable with each successive year. We recommend organizations remain part of a captive for at least five years to realize the full benefits. These projections are included with your free feasibility study.
Captives usually have a higher upfront cost than traditional insurance. Depending on the structure of your captive, it may take 3-5 years to realize a return on your investment. It’s vital to work with an experienced captive management company to understand the full scope of risks and requirements.
We’re an independent insurance agency offering a comprehensive suite of insurance solutions to protect you from the unexpected. William Blount is a leading outsourced risk manager for group captives in the Southeastern US. We specialize in matching our clients to member-owned captives that meet their long-term objectives.
At William Blount Insurance Advisors, we strive to provide a true concierge client experience. We’re reimagining the insurance industry by giving clients the power of choice from top-rated national and regional insurance carriers. We are committed to helping you profit from your strategic decision making and successful company management.
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