Captive insurance is a popular strategy, particularly on large-scale projects, and can be necessary based on your company’s loss history. In some cases, a few incidents can lead to the cost of traditional premiums skyrocketing, and in these cases a captive strategy can be a lifesaver.
However, if you’re utilizing this approach, it’s vital that your organization partner with a top-tier safety team, as this strategy carries both greater advantages and greater risks than conventional insurance.
A few of the benefits cited by captive insurance advocates include:
- Premiums based on your loss experience
- Reduced insurance cost over time
- Control over how your claims are handled
- Recoup up to 60% of underwriting profit and investment income
However there are also greater risks associated with these programs. Most fundamentally, there is a much greater exposure for any losses which occur. And while a well-run captive insurance program can significantly reduce your insurance costs as long as losses are contained, these savings can be rapidly overtaken by costs in the event that losses are greater than projected.
In other words, when you take on captive insurance in order to reduce your costs, it’s vital that you also take the right steps to prevent losses. Thankfully this is easily done by partnering with BCI.
Our experienced team of military veterans will work diligently to protect your project from losses through our proven three-phase approach.
Our clients consistently highlight our commitment to the mission – we’re there until the job is done, safely and successfully.
If you’re currently facing a high experience modification rate (EMR) or above-expected losses, it’s even more urgent that you connect with our team. By conducting a safety assessment, we can rapidly and cost-effectively diagnose the root causes of losses, and provide detailed recommendations for remediation.
In addition, our team will work collaboratively with your contractors and employees to create a “culture of safety” that will continue to provide value long after the current project is completed.
Captive insurance programs that utilize BCI consistently deliver fewer losses and thus greater project profitability for their owners. Even on a cash-flow basis, the return on investment of utilizing BCI is significant. And when you add in the value of avoiding the project delays and public-relations upsets associated with injuries or incidents, the case is clear: partnering with BCI is the best move you can make if you’re running a captive program.
If you are a captive insurance program provider or consultant, consider bringing BCI to the table to improve your clients’ outcomes and help them reap the full benefits of this unique strategy.
I’m a captive insurance consultant; I’ve been in the insurance industry for about 37 years, and today I put captive insurance companies together on behalf of major companies. These are companies so large that it makes sense for them to launch their own insurance company that they own, to reduce costs and give them more control.
When a company owns their own captive, good loss control is essential, helping them retain more underwriting profits. That’s where BCI comes in.
The BCI team are a perfect fit for my captives, because they truly understand that when a captive has a claim, that captive is spending the parent company’s dollars. They walk into a building or into an office or into a facility and they’re trained to see things like that that the average person isn’t going to notice – small details that can lead to big losses if they’re not handled.
You can see the military training in the way BCI operates. They show up early, they over-communicate, they provide documentation for everything that they do.
The team at BCI do what they say they will. And they’ve improved loss ratios on my most difficult, challenging accounts. For example on one account they were able to reduce the losses in the first year by 30-40%. And then in the second year and third year, they just continued to improve.
They have a very strategic approach. They carefully study the operation and the loss history, and recommend approaches that will directly address root causes; and their work ethic can’t be matched. I honestly won’t use any other loss control firm if I have the choice.
–Monica, Captive Insurance Leader
To learn more about our captive insurance program loss control services, contact us today.
