Captive Solutions for Manufacturing Businesses

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. So, how can you trust that the cost savings of a Captive program for your company will outweigh the effort involved with changing to a new plan? Here’s one example.


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.

The Challenge

Current employee benefits plan becomes exponentially more costly each year.

The Solution

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

The Results

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. Due to the success of the program for both the company and employees, Pierce decided to remain on a Captive plan and has been saving significantly each year. Peter Langdon, Pierce Aluminum’s VP of Human Resources remarked, “The way I look at it, every fifth year, I get a free year of insurance.”

Here’s a breakdown of Pierce Aluminum’s cost savings since 2014:

2014 = $317,000
2015 = $526,000
2016 = $896,000
2017 = $466,000
2018 = $707,000
Total savings over five years = $2,911,202

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