CIC Services and the Ragnar Group are launching a new group captive insurance programme specifically for the restaurant and bar industry. The captive, domiciled in Utah, aims to address the common challenge of traditional insurers misclassifying establishments, which drives premiums too high. The new captive will use underwriting guidelines that consider hours of operation, type of alcohol served, entertainment options, and management practices to align members with similar risk profiles. According to Andrew R. Reina, CEO of the Ragnar Group, "Our theory is simple. The vast majority of restaurants and bars are fundamentally misidentified when it comes to risk". He adds, "By introducing more precise guidelines and what we call 'community underwriting,' we believe this captive offers a fairer, more transparent solution to owners who have grown frustrated with traditional insurance models". The captive will also use "community underwriting," a process that incorporates feedback from existing policyholders into the review of new applicants. The programme is open to bars, pubs, nightclubs, and fine dining establishments. However, it excludes certain high-risk businesses, such as gentlemen's clubs, "cash only" operations, wedding venues, and establishments with mechanical riding devices. CIC Services Principal Shawn Holland says that Reina's approach is "extremely well-researched, and his underwriting guidelines are meticulous". He adds, "This novel approach impressed our team as well as actuaries and underwriters who have worked in this vertical for decades". Holland states, "We see this as a major step forward in empowering business owners to manage their insurance destiny". The captive has already drawn significant interest from the hospitality sector. The programme will be available to members by the end of September 2025.
