The document discusses the benefits of establishing a group captive insurance program. It notes that previously the industry faced high pricing from insurers who did not recognize their focus on safety. By sharing loss information and forming a group captive, members saw premium rate reductions, more investment in safety programs, lower losses over time, and underwriting profits returned to the group. This led to expanded coverage options and a high member retention rate, providing a long-term, market-driven insurance solution for the industry.

1. Group Captive Overview

2. The Problem – Starting Point
• Newer industry, not well understood by insurers
• Pricing appeared high relative to risk
• Industry focus on safety and loss control not given
credit by underwriters
• Individual companies willing to share information
within industry to improve safety
• Accounts services by local brokers, little synergy in
market
• Cost prohibitive to own individual captive

3. The Benefits - Group Captive
• New competition (self-insurance)… led to…
• Premium rate reduction… led to…
• Investment in safety and loss control… led to…
• Reduced losses… led to…
• Underwriting profits returned to group… led to…
• Expanded coverage… led to…
• High retention rate… led to…
• Long-term market driven solution… and a fun group

4. Establishing a Group Captive
• Find like minded companies/people
• Share a common friend (or enemy)
• Establish main objectives of program
o Focus on safety / loss control
o Premium reductions
o Coverage term expansions