Insurance, while very important, can be expensive. A traditional plan requires you to pay a fixed premium for the insurance company to assume risk of any claims. This means that if there are few claims made on your plan, your insurance carrier gets keeps what was not spent. However, if there are many claims on your plan, you incur massive increases at renewal.
Right now, it might look like you can’t win. Don’t worry – there is another option! You may be able to save significantly on premium costs if you pursue a self-insurance plan through a Captive.
What is a Captive?
A Captive is an insurance company that provides insurance to, and is controlled by, its owners. Captives can be formed by groups of companies and associations of similar types, such as: schools, non-profits, retailers, restaurants, or manufacturers. Or, they can be formed by companies that have nothing in common except a desire to save money. Think of captives like a credit union, where companies pool the risk and share the benefits!
Should I choose a Captive program?
The declaration that self-insurance programs are only for large corporations is a myth. Captive programs are designed to control health insurance costs for mid-sized companies, and serve just about every market segment, including non-profits and associations. When you establish a Captive, you are in complete control of your insurance. You have the power to manage and control costs, cash flow, claims, and risk.
A group health Captive is the best opportunity for a mid-sized group (50 – 1,000+) to truly impact employee benefit costs, without sacrificing benefits program quality. We have seen companies that are fully-funded on a premium basis realize savings of 12% – 15% in the first year alone! The potential for cost savings is exciting, but it is important to note that Captive success is often determined by the structure of the program and the captive manager. If you are considering a Captive solution, you’ll need an experienced partner to recommend the right fit. That’s why we’re here.
Our Captive Program - InCap®
Offered exclusively by Clark & Lavey, InCap® is a Group Captive program that delivers significant savings! If your company employs more than 50 people and you’re considering a Captive program, this could be the solution you have been looking for. InCap® offers you the following advantages:
- Total control of your plan’s benefit design
- Avoidance of unanticipated rate increases
- Data, cost, and communications transparency
- No burdensome plan negotiation and marketing
- Pooling of claims to control volatility and cash flow
- Retention of underwriting profit and investment income