Using Captives To Insure Against Property Losses

The International Risk Management Institute recently hosted a webinar about how organizations can use captive insurers to insulate one's business from rising market rates due to the pressure on property lines. Everyone is paying for the property losses caused by climate change. Even if one is based in the Midwest or the mountains, it's paying for hurricanes, tornado damage, etc. Everyone pays for property losses in some form or another, irrespective of one's political belief on the underlying cause(s) of climate change.

When an organization uses a captive to finance some of its risks, it's saving nearly 20% on its insurance costs, as compared to using the traditional commercial insurance market -- and by so doing, it is also building equity within an insurance company that it owns and controls. Is there a way to purchase a commercial property policy that would exclude certain events or thresholds (and, thus, keeping one's premiums lower), and then use a captive to cover those exclusions so that there are no gaps in coverage? Yes, there typically is.

With hurricane season beginning in just a few days, contact one of the executives at Alliance Captive Management to discuss how captives can help protect your organization from property losses.

Call us: 866-570-5794