A group captive is an insurance company that is owned by multiple people who are insured by said company. They are essentially the owners, managers and beneficiaries of their own insurance. There are many reasons why organizations or professionals may want to join a group captive, including risk, cost and coverage stability.
Less Risk and Loss
Group captive insurance provides insureds with control over the riskiness of their insurance and isn’t so susceptible to market volatility. The policyholders determine the terms and conditions of their own policies to do what is best for the group members. A group captive will also be able to easily manage claims, share and predict loss and encourage safety and risk management in the workplace.
Because a group captive is in business solely to take care of its members, unlike traditional insurance companies that emphasize making the greatest profit, it focuses a lot of effort on keeping costs low. The insureds control what the company does, so they use their mass purchasing power to choose the best coverage options for the best rates. They can also manage premium costs and use any profits to distribute dividends to members.
Those in high-risk professions such as contractors or physicians may have a difficult time getting the coverage they need with a single-owner captive or traditional insurance company. A group captive allows them to obtain insurance that is more tailored to their profession and can take on more risk. Coverage under this type of insurance is typically more comprehensive.
If you require insurance that cannot be fulfilled through a single-owner captive or commercial insurance company, a group captive may be the way to go. Although there are many aspects to be considered, this type of insurance will guarantee you control over your own coverage and responsive services.