Ensuring

Accelerated Growth

Change the course of risk.

Artex has long been at the forefront of providing a diverse range of captive solutions, including Group Captives, to a broad spectrum of industry sectors. We currently manage several different Group Captive programs – each open to new members – that have been designed specifically 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.

What Is a Group Captive?

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 Group Captives among mid-size employers to provide medical stop-loss coverage for healthcare plans.

Advantages of a Group Captive: United We Stand

  • Lower overall insurance spending as premiums are based on personal history and not on market trends and traditional insurance costs
  • More comprehensive and responsive coverage
  • Reduced impact of insurance market volatility
  • Enhanced risk control capabilities
  • Increased control over claims management
  • Minimized risks through heightened safety awareness and emphasis
  • Economies of scale when purchasing reinsurance

Types of Group Captives

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. It may also be called 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.

Heterogeneous

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 Insurance Program

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.

  • Established: 1995
  • Territory: National
  • Captive Domicile: Bermuda
  • Lines of Business: Auto Liability, General Liability, Workers Compensation
  • Eligible/Target Premium Range: $350,000 - $3 Million

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 Insurance Program

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.

  • Established: 1996
  • Territory: National
  • Captive Domicile: Bermuda
  • Lines of Business: Auto Liability, General Liability, Workers Compensation
  • Minimum Premium: $300,000

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 Insurance Program

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.

  • Established: 2002
  • Territory: National
  • Captive Domicile: Grand Cayman
  • Lines of Business: Auto Liability, General Liability, Workers Compensation
  • Minimum Premium: $350,000 - 1 line of coverage; $450,000 - 3 lines of coverage

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 Insurance Program

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.

  • Established: 1996
  • Territory: Wisconsin-domiciled risks only
  • Captive Domicile: Bermuda
  • Lines of Business: Auto Liability, General Liability, Workers Compensation
  • Premium Range: $200,000 - $3 Million

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 Insurance Program

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.

  • Established: 2016
  • Territory: National
  • Captive Domicile: Cayman
  • Lines of Business: Auto Liability, General Liability, Workers Compensation
  • Minimum Target Premium Range: $100,000

Industry Captive (Homogeneous)

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.


C-U First

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.

  • Established: 2004
  • Territory: National
  • Captive Domicile: Washington, D.C.
  • Lines of Business: Workers Compensation
  • Minimum Premium: $100,000

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).


IWLAIC Insurance 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 program is endorsed by the International Warehouse Logistics Association and companies need to become members of the IWLAIC in order to be insured through the IWLAIC Insurance Program.

  • Established: 1996
  • Territory: National
  • Captive Domicile: Grand Cayman
  • Lines of Business: Auto Liability ($2 Million limit), General Liability, Workers Compensation
  • Minimum Premium: $250,000

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.


NewCon

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.

  • Established: 2003
  • Territory: National
  • Captive Domicile: Grand Cayman
  • Lines of Business: Auto Liability, General Liability, Workers Compensation
  • Minimum Premium: $250,000

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.


Specialty Trades Insurance Company ("STIC")

The Specialty Trades Insurance Company ("STIC") 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.

  • Established: 1999
  • Territory: National
  • Captive Domicile: Vermont
  • Lines of Business: Auto Liability, General Liability, Workers Compensation
  • Minimum Premium: $300,000

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.


TRIP

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, Chemical Haulers, Refuse Haulers, Sand and Gravel, Towing, Cement Mixers, and Intermodal Operations.

  • Established: 2000
  • Territory: National
  • Captive Domicile: Bermuda
  • Lines of Business: Auto Liability, General Liability, Workers Compensation
  • Minimum Premium: $250,000

AL coverage enhancements include Auto Liability Limit up to $2,000,000 and a CA9948 endorsement to remove the AL pollution liability exclusion.

Accepting good risks within a difficult insurance classification has long been the hallmark of the TRIP program.

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