Learn About Captives
What are the Advantages of Captives?
Information about Captives and How they’re structured.
Captives 101:
WHAT ARE THE ADVANTAGES?
Joining a Captive can provide your dealership with protection, stability and control. Take the next step in learning how to better guide your dealerships future.
The Benefits of Participating in a Captive Include:
- Increased Control Over Insurance Costs – Participation in a risk management program designed to meet the specific needs of the captive’s members including the selection of service providers Choice of Counsel.
- Return of Underwriting Profits – Captives afford Members the ability to receive a Return of Underwriting profits.
- Premium Stability – Contributions which are based on the member company’s expected losses (plus fixed costs), avoiding the cyclical pricing encountered in the conventional insurance market.
- Continuity of Coverage – Simplified renewal process at the reinsurance level avoiding “last minute” decisions.
- Improved Overall Insurance Program – Group purchasing allows the captive to enhance coverage, increase marketability, and extend cost savings to all lines by exploring creative options.
- Quality Reinsurance Carriers – Captive Reinsurance Partners are Top Rated Nationally recognized reinsurers.
- Fellow Members – Prospective members selected based on a Dealer Profile which includes Management Philosophy, Financial Stability, and acceptable Loss Ratios. All new members are subject to a unanimous vote of the current Board of Directors for acceptance.
- Heightened Safety Awareness – Provide a forum to exchange ideas with fellow members and discuss industry trends and litigation issues.
- Customized Loss Control Services – Tailored to address member specific loss control issues with full access to claims information.
- Premium Deductibility – The structure of the captive allows members to deduct premium as they would under a conventional program.