Artex has long been at the forefront of providing a diverse range of captive solutions to a broad spectrum of industry sectors, including group captives. We currently manage several Group Captive programs — each open to new members — specifically designed to meet the needs of mid-market employers looking for an alternative risk transfer solution but without the funding options that larger corporations have. Many of our programs were established more than a decade ago and have performed well consistently during a soft market and have excelled during hard market conditions.
A group captive is an insurance company owned and operated by captive members, strictly for the benefit of those members. It enables middle-market employers to increase their underwriting credibility through the benefits of collective purchasing power. Group captives are empowered with the control to select service providers, determine coverage levels, manage losses, direct the use of surplus and, ultimately, share in the results — ideally generating bottom-line profit. Leveraging this combined strength helps medium-sized firms strike a balance between risk retention and transfer to reduce those costs and promote long-term stability between insured group members and underwriters.
Coverages provided by a group captive typically include workers' compensation, general liability, automobile liability (owned and non-owned) and automobile physical damage insurance. In addition, since the implementation of the Affordable Care Act (ACA), there has been an increased use of employee benefit group captives among mid-size employers to provide medical stop-loss coverage for healthcare plans.
Group Captives can be set up as heterogeneous or homogeneous programs. A heterogeneous captive insures a group of unrelated companies representing different industries. It encourages strong growth through risk diversification. A homogeneous captive is an entity owned by a number of companies in the same industry or association with similar insurance needs, also known as an association or industry captive.
Captives are not a good fit for everyone, though. The right candidate will qualify based on the company's premium size, risk exposure, financial stability and senior management's commitment to safety and loss control. Our experienced team at Artex can assist agents and brokers in assessing the viability of a group captive solution for clients.
Ownership participation in a group captive can provide alternative risk transfer advantages to middle-market employers that would otherwise have few funding options. Group captives are an attractive and simple way to smooth the cyclical volatility of the standard insurance market.
Milestone, founded in 1995, brought together a diverse group of companies that were seeking greater control of their insurance destiny. As one of Artex's more established captive programs, Milestone has produced an enviable track record for its owner-members. Several of the original founding members continue to have a very active presence in the program.
Milestone is open to a broad range of classifications. While operations may differ significantly between companies, one constant ties all of these entities together: a strong commitment to controlling risk and minimizing losses.
Millennium was established in 1996. While the program began with a group of companies located in the Midwest, it has since grown to be national in scope. As a heterogeneous program, Millennium brings together a diverse group of companies to share risk.
The program's size, membership diversity, and careful approach to risk selection allow Millennium to capitalize on its spread of risk and optimize the distribution potential to its insured owners.
Vision was established in 2002. Its extensive eligibility guidelines have provided a varied membership base and an advantageous spread of risk. Because of its beneficial diversification, Vision has been able to consider some "difficult" industry classifications. Current membership includes automotive dealers, foundry operations, hotels, restaurants and a lumber company.
Vision hosts risk control workshops twice a year as forums where each member can learn about the most progressive ways in which to mitigate risk, manage claims and control losses.
Wisconsin was the first state to enact workers' compensation legislation in 1911. The Wisconsin Insurance Program was established in 1996 to provide competitive workers' compensation and multi-line alternative-risk solutions to safety-conscious employers domiciled in that state.
Wisconsin has enjoyed manageable growth since its inception and accepts a wide range of industry classifications. A strong emphasis on and adherence to safety and loss control initiatives has allowed Wisconsin to provide consistent material advantages to its member-owners.
Command, founded in 2016, provides a diverse group of companies the opportunity to better control the overall cost of insurance through a captive. These companies, traditionally thought of as too small to take risk by themselves, are now able to reap the rewards of being involved in a group captive and owning and managing their own insurance company.
Ownership participation in a group captive can provide alternative risk transfer advantages to middle-market employers that would otherwise have few funding options. Group captives are an attractive and simple way to smooth the cyclical volatility of the standard insurance market.
NewCon is an insurance program created in 2003 by contractors for contractors. Membership eligibility focuses on trade and artisan contractors having a strong commitment to workplace safety and loss control.
Target classes include acoustical ceiling, carpentry, drywall, electrical, flooring, furniture and fixture installation, HVAC, land graders, landscaping, masonry, plumbing, and painting contractors. Residential contractors are excluded. General contractors are acceptable as long as they self-perform more than 50% of their work.
NewCon has a record of superior performance attributable to a proactive membership, a dedicated captive claims team, and support from an issuing carrier that is considered the market leader for construction captives. Underwriting eligibility is selective in order to protect and maintain performance results.
The C-U First insurance program was established to provide workers' compensation to credit unions. C-U First is a national program; however, the majority of its current membership is located in California.
Although C-U First was originally established for credit unions, the membership is open to considering other classes of business having similar risk profiles. Predominant class code is 8810 (CA 8801).
The Specialty Trades Insurance Company was formed in 1999 to provide coverage to a select group of contractors having the shared belief that insurance can be a manageable cost.
STIC provides risk management and coverage solutions specifically tailored to meet the unique needs of electrical and mechanical contractors exclusively.
STIC is open to electrical and mechanical contractors that have a strong commitment to controlling risk and minimizing losses. Residential or general contractors are not permitted. Members are encouraged to attend semi-annual board meetings and to actively participate on a program committee of their choosing.
The principal mission of STIC is to proportionally shift control of the insurance program from insurers and place it in the hands of insured members. Benefits can be expressed in tangible terms, such as insurance cost savings, as well as intangible, such as the creation of a safer work environment.
Harvest was founded in 1991 to bring together companies active in the food industry that are seeking to assume greater control of their risk programs to achieve long-term stability. Through Harvest member companies now control their insurance costs and are not subject to the cyclical volatility of the standard insurance market.
Although Harvest is considered to be a homogeneous program, eligibility is broad and includes most food-related industry classifications: bakeries, dairies, food wholesalers, manufacturers, processors, restaurants and the like. Primary exclusions are meatpacking and slaughterhouse operations. Harvest can also accommodate the fleet exposures of eligible risks. The membership meets regularly to collectively share ideas on ways to enhance the safety element of the work environment.
Since its inception in 2000, the TRIP group captive has been able to successfully provide multi-line coverage solutions for some of the more difficult transportation risk classifications. Eligible classes include, but are not limited to tank operations, petro haulers, and chemical haulers, refuse haulers, sand and gravel, cement mixers and intermodal operations.
Auto liability coverage enhancements include auto liability limit up to $2, million and a CA9948 endorsement to remove the auto liability pollution liability exclusion.
Accepting good risks within a difficult insurance classification has long been the hallmark of the TRIP program.
The IWLAIC Insurance Program was established in 1996 to write warehousing risks. This group captive is open to firms that derive the majority of their revenues from warehousing and logistics operations. The International Warehouse Logistics Association (IWLAIC) endorses the program and companies need to become members of the IWLAIC to be insured through the IWLAIC Insurance Program.
Eligibility is limited to SIC codes 4222 and/or 4225 and WC codes 7228 and/or 7229. At least 60% of revenues must come from warehousing/ logistics (including transportation). At least 60% of transportation exposure must be devoted directly to serving customers of the warehousing operation.
The IWLAIC insurance program has experienced tremendous success since its inception. A history of consistently providing policyholder distributions, along with the backing and support of a very strong and active industry association, makes this an attractive program for warehouse operators having a firm commitment to maximizing workplace safety.
Construction Risk Containment Insurance Company (CRCIC) was established to provide a captive solution for construction companies that are typically viewed as higher hazards in the industry. Best-in-class heavy civil, street and road, artisan, demolition and general contractors will be considered.
Artex offers employee benefit captives that enable businesses to reduce costs and gain more control over their plans.
Our highly skilled captive formation specialists provide all types of captive structures in any domicile where the required legislation exists.
We offer a full range of alternative risk insurance management options as well as providing the risk management tools that allow businesses to thrive.
