Group captives allow businesses to take control of their casualty insurance costs. Instead of relying solely on the traditional insurance market, which can be unpredictable and expensive, group captives enable middle market member companies to achieve significant buying power. This allows for greater stability and predictability in insurance costs.
Another major benefit of group captives is that they promote better risk management. Because members are actively involved in the management of the captive, they have a vested interest in sharing ideas toward identifying, mitigating, and controlling claims. This can lead to a more proactive and effective approach to risk management, which can ultimately save businesses money and improve their bottom line.
In addition to these financial benefits, group captives also provide opportunities for networking and collaboration. As a member of a captive, you are part of a community of like-minded businesses that are working together to achieve common goals. This can lead to valuable relationships and partnerships that can benefit your business in countless ways.
By being active in claims and risk management, members will see a decrease in their overall insurance cost since costs are related to each individual members’ claims experience. With each member paying lower premiums, the overall groups buying power diminishes over time, which is why growth of the captive is so important. The more resources there are to share and the larger the group becomes, the greater the buying power of the group. This means that the captive can become even more stable and effective, and members can enjoy even greater benefits.
Growing a group captive takes effort and commitment from all members and broker partners, and the benefits are well worth it. Member referrals and introductions to additional like minded companies are paramount to the captive growth. The companies that the captive wants to do business with are often the companies that current members are already doing business with in other areas. Working together to build a strong and thriving captive, all members can reap the rewards of greater stability, better risk management, and a stronger sense of community. Get in touch with your Valley Forge Captive Advisors Business Insurance Executive today if you have a company in your network that would be a fit for your group captive!