While 2020 turned everything on its head, the insurance industry has remained consistent – in that it is in a constant state of change. There is one approach to insurance that is gaining in popularity for businesses of all sizes, and if your company fits the unique requirements, you could manage your risk more effectively while reaping the rewards.
Participating in a captive arrangement is a way to partake in the risk of the enrollment you bring to your captive or captive cell. In doing this, you have an opportunity to reduce costs, set your own risk guidelines and retain unused premiums in the form of profit. While this sounds like an advantageous opportunity for everyone, it takes a savvy risk barer to be in a captive arrangement. This can be determined by understanding your risk transfer, risk distribution and third-party affiliations.
Gary Osborne, President of the SC Captive association the manager of UME’s own captive program, recently shared four major ways in which Captive insurance has been impacted in 2020. Each area – the pandemic, IRS, the market, and Washington state – has contributed to significant changes that have already happened or potentially could happen in the future.
Opening your own Captive may have an initial cost but at UME there are many advantages you can capitalize on as a captive owner or cell owner. “As we continue to face challenging market segments within Captives, UME is quick to react and still maintains an innovative design structure along with excellent carrier partnerships,” says one of our brokers. “In addition, their flexibility, speed to market and sterling service produce positive results for all who are involved.”
Our suite of services partnered with a unique approach to implementation and maintenance of your captive is unlike any other you’ll find in the industry. With so many factors at play, we can partner with you to find what works best for your business and your employees.