View attached to see the advantage if turning insurance into an operational asset by using Captive Insurance from Acrisure

1. Captive Insurance

2. Who is Acrisure
Acrisure is an organization of growth oriented leaders that
recognize the value and wisdom of leveraging strengths while
maintaining the entrepreneurial mind-set and culture that
caused it to be successful
Founded in 2005, Acrisure, LLC is the 7th largest insurance
broker in America and one of the fastest growing as well. The
company has grown ~ 80% per year on a compounded
annual basis since inception and is poised for further
acceleration given it’s recent management lead buyout
158 Agency Partners / 344 Domestic Locations / 33 States
7 International Locations / $1.2 Billion Revenue

3. Acrisure Footprint

4. Jerry Whitaker –Senior Partner
Jerry joined Acrisure in July of 2010, as an investor/partner, with
over 25 years of commercial, employee benefit insurance
experience, specializing in large contractors, large property
management companies, Surety, Captive Insurance Programs,
Alternative Risk Financing and Professional Employment
Organizations.
He brings strategic risk management that focuses on the true
costs of risk, then attacks the cost drivers within the insurance
program and uses risk management to mitigate risk for his clients.
His expertise is turning insurance into an operational asset for
clients.
Jerry graduated from Olivet Nazarene University in 1984 with BS
in Business Marketing and Minor in Communication and
Economics. He earned the Certified Insurance Counselor
(CIC)designation in 1995, and the Construction Risk and Insurance
Specialist (CRIS) in 2006, and is a member of the Risk Insurance
Management Association (RIMS).

5. Overview of The Alternative Market
• The New Normal
The Alternate Market has now
become the Traditional Market as over
50% of US business is now in it!!
• What is included in this group?
Captives (Single-Parent and Groups)
Self-Insurance (Groups and Individuals)
Risk-Retention Groups
Others

6. What is a Captive?
• Insurance subsidiary of a non-insurance parent
• Exists to serve the risk management needs of the
parent and/or to support the core business goals
of the parent, rather than for its own profitability
• Risk financing vehicle for retaining corporate
insurance risks

7. Risks Commonly Insured in Captives
• General Liability
• Completed Operations Liability
• Automobile Liability
• Professional Liability
• Property and Business Interruption
• Terrorism
• Workers Compensation
• Employee Benefits
• Cyber Liability

8. Sample Risk Profile

9. Captive Advantages
• Manage Costs
Accelerate cash flow through premiums, claims and reserves
Reduce frictional costs (commissions, taxes, risk charges,
administration)
Captive underwriting savings and investment returns
Improve cash flow and centralize investment of reserves
• Increased Control
Enhance coverage spread of risk
Improve data management and claim cost management
Remove Insurer’s profit and expense loading
Improve management reporting and understanding of risk

10. Captive Disadvantages
• Requires capitalization and start-up costs
• Increases organizational complexity
• Involves on-going administration and legal costs
• Involves some uncertainty with regard to income
tax benefits
• Minimum versus economic capital discussions
– Consider correlation between lines of business
– Volatility risk, credit risk, uncertainty risk assumption
• Exit process can take time

11. Captive - Typical Client
• Family-owned with wealth transfer interest/issues;
Immediate access to decision maker(s)
• Minimum premium – Workers’ Comp/Auto/GL = $150,000
• Average premium – $250,000-$750,000
• Typical Industries - Heterogeneous – Manufacturing,
Distribution, Construction, Retail, Service
• Typical Industries – Homogeneous – General Contractors,
Construction, Transportation, Distributors, Healthcare,
Staffing
• Safety Culture
• Superior Loss History

12. Captive Qualification
• Want more control and hate traditional market approach
• Risk taker who is interested in getting into the insurance business
too
• Focus on claims vs. price
• Has existing safety culture and core values that show your business
is built on a value proposition and not just price
• Are you willing to look at Captives as an investment and not just an
annual expense?
• Feasibility Study that will show how the Captive would have
compared to your program over the past 5 years
• Will you invest more to get more?
• Looking for another competitive edge in your business and can
envision a Captive delivering that

13. Captive Qualification Continued
• If you’re not ready this year but like the Captive
concept, we can become your broker now and get you
“Captive Ready” or charge a fee for our services
• Should we be successful together, our compensation
becomes transparent and we’ll charge a fee or fee plus
commission
• Should we become your broker, we’ll also recommend
transferring all coverages to us whether or not they’re
in a captive or not

14. Acrisure Capabilities
• Self-Insured Groups (Creation and Administration)
Workers Comp (State and Industry Specific)
Medical
Other
• Captives
Single Parent (Creation and Administration)
Groups (In Development)
• Retail Sales
Group Captives (P&C and Benefits)
Self Insured Groups
• Single Parent/831(b)

15. Sample Feasibility Study

16. For Information contact
Jerry Whitaker
jwhitaker@acrisure.com
269-274-6159