Alternative Markets

Strategic Approach to Leveraging your Insurance Dollars

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The trend to reject the traditional insurance transfer of risk is growing, with now over 50% of commercial premiums converting to a non-traditional insurance method, specifically: Captives, Risk Retention Groups and Self-Funding.

The benefits that most alternative markets seek to provide is to share in the profits that normally go to the insurance company when a business has lower than expected claim levels.

Other benefits are:

  • Stable premiums that result in more predictable cash flows
  • Better control over how funds are invested
  • Ablility to directly negotiate with reinsurers
  • Risk Management Program Customization
  • More favorable regulatory domiciles

Single Cell Captives

These Captives are based solely on your company’s loss experience and do not combine with the loss experience of any other entities; there is no joint and several responsibility.

If you feel that you are throwing away your insurance dollars because your loss experience is consistently better than expected and your premiums are in excess of $150,000 per year, this could be an attractive option.

Capax has extensive experience with single cell captives that cover:

  • Commercial Liability
  • Commercial Property
  • Commercial Auto
  • Workers’ Compensation

Group Captives

These Captives are established by a group of companies with similar businesses or exposures and write only the risks of its owners and/or affiliates ; each owning a minority interest in the Captive. These Captives share the risk, cost and benefits of providing insurance to their members.

Capax has extensive experience with Group Captives that cover:

  • Workers’ Compensation
  • Employee Benefits
  • Commercial Liability
  • Commercial Auto