GROUP CAPTIVE MEMBER CASE STUDY
Industrial supply distribution company with facilities in the South and Midwest.
gET STARTED
Company Description
2006
Joined Captive
In 2006, the company joined a group captive with the goal of obtaining greater control over the cost of its casualty insurance. Since becoming a group captive member, the company has been pleased to see a substantial reduction in its total cost of insurance.
Group Captive Experience
According to the CFO and Co-owner:
Being a member has been the catalyst for developing the culture of safety that now exists within our company. The biannual workshops and monthly webinars give the HR and safety people ideas and measurable goals to further build and sustain that culture. The annual board meeting allows us to participate in running the captive and provides our management team with the information needed to support existing programs and build new initiatives.
rESULTS
The following highlights the company’s experience in the captive over the past 15 years:
CASE STUDY DATA
The company nearly doubled its payroll from $9.8 million to $18.9 million.
2x
The company's premium as a percentage of payroll decreased by 63 percent — from 2.57 to 0.96 percent.
63%
The company's net premium dropped by 45 percent compared to what would have been a 93 percent increase in premium had the company continued in a conventional insurance program.
45%
Being a member has been the catalyst for developing the culture of safety that now exists within our company."
- Company CFO & Co-Owner
See Full Results
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Year in Captive
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
$10M
$20M
1.0%
2.0%
3.0%
0.96%
$5M
$15M
2.57%
$9.8 MIL
$18.9 MIL
Member Payroll
Premium as a % of Payroll
Member Premium as a Percentage of Payroll
$200K
$400K
Net Captive Premiums Including Dividends
Traditional Insurance Renewal - Flat Rate
$485,787
93%
45%
$138,194
$100K
$300K
Member Premium Trends
increase
decrease
1. Assumes no rate increase over the period
2. Years 13-15 net premium projected based on most recent 5 years of dividends
$251,489
Traditional Insurance Premium
Year in Captive
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
1
2
GROUP CAPTIVE MEMBER CASE STUDY
Industrial supply distribution company with facilities in the South and Midwest.
gET STARTED
Company Description
2006
Joined Captive
In 2006, the company joined a group captive with the goal of obtaining greater control over the cost of its casualty insurance. Since becoming a group captive member, the company has been pleased to see a substantial reduction in its total cost of insurance.
Group Captive Experience
According to the CFO and Co-owner:
Being a member has been the catalyst for developing the culture of safety that now exists within our company. The biannual workshops and monthly webinars give the HR and safety people ideas and measurable goals to further build and sustain that culture. The annual board meeting allows us to participate in running the captive and provides our management team with the information needed to support existing programs and build new initiatives.
rESULTS
The following highlights the company’s experience in the captive over the past 15 years:
CASE STUDY DATA
Exhibit 1:
Member Premium as a Percentage of Payroll
Year in Captive
$5M
$10M
$15M
The company nearly doubled its payroll from $9.8 million to $18.9 million.
2x
The company's premium as a percentage of payroll decreased by 160 percent — from 2.57 to 0.96 percent.
160%
The company's net premium dropped by 45 percent compared to what would have been a 93 percent increase in premium had the company continued in a conventional insurance program.
45%
Being a member has been the catalyst for developing the culture of safety that now exists within our company.
- Company CFO & Co-Owner
See Full Results
03
04
02
06
07
05
09
10
08
12
13
11
14
01
15
1.0%
2.0%
3.0%