How a Casualty Group Captive Can Help You Beat Rising Insurance Premiums

If you've been hit by skyrocketing insurance premiums, you're not alone. Across industries, companies are experiencing steep increases in casualty insurance costs, often without any corresponding rise in claims activity. A combination of hard market conditions, reduced underwriting appetite, and increased loss ratios for traditional insurers is driving this trend.

But there is a solution that growing numbers of savvy businesses are turning to: Casualty Group Captives.

What Is a Group Captive?

A group captive is a member-owned insurance company created by and for its members to provide coverage such as workers' compensation, general liability, and auto liability. Rather than paying premiums to a traditional insurer who takes your money and keeps any underwriting profit, you join forces with other like-minded, safety-conscious companies to insure each other.

Why Join a Casualty Group Captive?

1. Control Over Costs

Captives are structured to return underwriting profits and investment income to members. This means that if your company maintains low claims, you don't just avoid increases, you get money back.

2. Shield from Market Volatility

Unlike traditional carriers that raise rates due to industry-wide trends, captives base pricing on member performance. This provides stability and long-term predictability in insurance costs.

3. Incentive to Improve Safety

Captive members are incentivized to invest in risk management because good safety performance translates directly into financial gain.

4. Transparency and Ownership

You gain visibility into how your insurance dollars are used, and as a part owner, you help set underwriting standards, select service providers, and participate in major decisions.

5. Peer Group Advantage

You're not alone. Captives often consist of financially sound, safety-driven companies. You learn from peers, share best practices, and foster a culture of collective risk improvement.

Is a Captive Right for Your Business?

Group captives aren't for everyone, but they are an excellent fit for companies that:

• Pay at least $150,000 annually in casualty premiums
• Have a strong safety culture
• Want to escape the cycle of premium hikes
• Are financially stable and looking for long-term solutions

Final Thought

The traditional insurance model is built to protect the insurer's profits, not yours. A casualty group captive turns that model on its head, aligning your insurance strategy with your business goals.