By joining a group captive to satisfy their primary casualty insurance needs, many organizations avoid the challenges of cyclical traditional insurance and reduce total cost of risk. Unlike a traditional insurer, a group captive is not in business to maximize profits. Its purpose is to manage the risks of its member companies, while keeping costs down.
Group captives can be used for workers’ compensation, commercial auto, and general liability exposures. The benefits of a group captive include:
- Greater stability, less risk.
- More predictable pricing.
- Enhanced safety.
- Cost reduction.
- Sharing of best practices.
- Investment income.
With more than 500 companies of all sizes and across all industries working with Marsh’s Group Captive Practice, Marsh is the leader in group captive insurance.
Through MPACT®, our holistic and integrated approach to reducing casualty total cost of risk, we offer member-owned group captive programs, and provide member companies with a more customized and stable casualty insurance solution than is available via the traditional market.
Who It’s for
Before joining a group captive, a prospective new member must meet a minimum premium threshold set by the other members, which share ownership of the captive. Prospective members generally must also demonstrate:
- Financial stability.
- A commitment to safety and claims oversight.
- A business philosophy compatible with the group captive and its other members.
What You Get
- Greater market stability and control over casualty insurance costs.
- Superior loss control and claims handling.
- The opportunity to directly share investment income and underwriting profit.