Captive Savings: A Case Study

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There are many benefits of employing a Captive insurance program, including cost savings. In fact, we have seen companies that are fully-funded on a premium basis realize savings of 12% – 15% in the first year alone. But, what does that mean? It’s hard to imagine a percentage of savings without attributing real dollar figures to it.

Our Group Captive program, InCap®, delivers significant savings and is offered only through Clark & Lavey. If your company employs 50 or more people, this could very well be the benefits solution for you! Don’t just take our word for it – check out these real-life examples of companies who found cost savings success through InCap®.

Challenge: Current employee benefits plan becomes exponentially more costly each year.

Solution: Cost savings with Clark & Lavey’s Group Captive program, InCap®!

Pierce Aluminum, an aluminum manufacturing facility in Franklin, Massachusetts utilized a fully-funded employee benefits plan for more than a decade. With nearly 200 employees and 140 on the plan, premiums were rising steadily each year. In 2014, Pierce decided to switch to InCap®, in an effort to  reduce costs while maintaining benefits plan quality for employees. In that first year alone, the company saved $317,000. Pierce Aluminum liked the control and transparency InCap provides. They viewed captives not as a one-time thing, but rather a deliberate course for optimizing benefits control and has been saving significantly each year. Peter Langton, Pierce’s VP of Human Resources remarked, “the way I look at it, every fifth year, I get a free year of insurance”. See for yourself!

Here’s a breakdown of Pierce Aluminum’s cost savings vs. fully-funded renewals since 2014:

captives savings

Putnam Plastics, just completed their first year in InCap®, and realized a savings of $610,000. This company also started with a fully-funded program for their 200+ employees, with 175 enrolled.

If a Captive solution sounds unattainable, we promise you it’s not. You can reduce employee benefits costs, while simultaneously controlling your plan’s benefits design. To learn more about Clark & Lavey’s InCap®, contact us online or call us at 603.883.3773 today!

Not sure if a captive program is for you? Check out our blog post outlining what a captive is for additional insight and information.