CIC Services, a risk management firm specialising in captive insurance, has launched a new programme designed to make captives a viable option for small to medium-sized companies that may otherwise be too small to consider using them in place of commercial insurance.
The CIC Services bundled programme allows an insured business to reinsure their current commercial insurance premiums and retain up to 40 percent of the premium or risk, while also retaining their existing insurance broker and not sacrificing coverage.
It makes captives a viable option for many mid-market companies that may not have previously been candidates by allowing them to own a captive without the high transactional costs and minimums that have typically closed the door to self-insurance for smaller companies.
Participating businesses will not be required to purchase a fractional share of an established group captive, rather they will control 100 percent of their individual captive.
As the captive is wholly owned by the business owner, they will also retain 100 percent of the underwriting profit, significantly reducing the net cost of the businesses’ insurance programme.
The programme is designed to match rate, limits, and policy language for existing commercial insurance policies, and allow the insured business or captive owner to retain anywhere from 10 to 40 percent of the premiums and risk.
The policies are issued by the A+ rated carrier, who will also provide integrated reinsurance, supplying coverage and protecting the captive and business owner from catastrophic loss.
The programme is operated together with experienced underwriters and third-party actuaries.
According to CIC Services, the bundled programme can be an ideal fit for businesses that; have a proactive risk management and loss control programme; continue to pay increasing commercial insurance premiums with a low claims experience; and pay a total of at least $250,000 in combined property and casualty premiums.
Nate Reznicek, director of operations at CIC Services, commented: “The bundled programme is a revolutionary opportunity for both insured businesses and their insurance brokers to look to replace coverages from the traditional insurance market.”
“Business owners and their trusted brokers now have a proven method in which to participate in their risk and recoup significant amounts of underwriting profit without sacrificing coverage, limits, or the credibility of carrier rating.”