One of the most common questions business owners ask when discussing the topic is: How much time is required to own your own insurance company? While the idea of forming your own insurance company may seem complex, Valley Forge Captive Advisors (VFCA) is here to help guide you through the process.
Support Every Step of the Way
Owning your own insurance company through a group captive doesn’t mean navigating the process alone. VFCA is a key resource that assists with everything from the initial submission, the renewal process, claims management, and general questions about captive and insurance. Whether you need guidance on claims handling, compliance, or strategic decision-making, VFCA ensures you have access to the right experts.
Efficient Claims Management
One business owner I spoke to thought they would have to hire their own director of claims to oversee litigation, resolution, and the claims process. Don’t Worry! Owning your own insurance company allows for the benefits of ownership through returns of unused loss fund distributions and investment income while contracting out the claims servicing to a third-party administrator (TPA). This means that while the captive members maintain ownership and control, professional administrators manage the day-to-day claims process. As a business owner, you’ll work directly with the TPA to stay informed and involved in claims resolutions.
Additionally, you have a seat at the table when claims decisions are made. The captive values your input, recognizing that no one understands your business and potential losses better than you do. This level of control ensures that claims are handled fairly and efficiently.
Financial Benefits of Captive Ownership
Beyond risk management, owning your own insurance company through a captive provides financial advantages. Unlike traditional insurance, where unused premium dollars remain with the carrier, a captive allows members to receive unused loss funds as a distribution and returns investment income. This means if claims are well-managed and losses are minimized, businessescan reap financial rewards through distributions!
If you have questions about how a group captive can benefit your business and help you take control of your insurance costs, reach out today. With the right resources and expert guidance, owning your own insurance company can be a strategic, profitable decision without the time and expense burden of starting your own insurance company!