from Risk Sharing
Delivering ART solutions to a greater number of businesses.
Over the years, increasingly more small and mid-size companies have turned to captives to gain the potential economic benefits and risk management strategies of these structures. Artex uses risk pooling as a risk management tool to protect against severe or catastrophic risks, diversify the underwriting portfolio of participants and provide unrelated risk to captives. Artex’s Group Captives are a form of risk pooling.
We have established several specific niche risk pooling solutions to address different coverage lines and needs.
Copper Mountain Assurance
Copper Mountain Assurance, Inc. is a Utah-domiciled captive insurance company designed as a risk pooling facility for Artex’s clients. We have three risks pools with Copper Mountain:
- Enterprise Risk Program (ERP): For middle-market businesses, insures low-frequency, high-severity exposures.
- Deductible Reimbursement Program (DRP): Serves clients looking for alternative solutions to insure their deductibles and self-insured retentions of $50,000 or less in their commercial lines insurance programs. The program pools various deductibles in property, management liability (D&O, EPLI), general liability, auto liability, inland marine, cyber liability, pollution liability, professional liability and crime.
- Management Liability Program (MLP): Insures a broad range of management lines through captive participation in our program – from D&O to cyber, fiduciary, EPLI and miscellaneous professional liability. The maximum limit offered to any insured is $500,000 in the aggregate for each line of coverage.
Artex Exchange (AEX)
The Artex Exchange – AEX – is a contractual agreement among participating captives to share the primary layer of workers compensation risk with each other. Each business pays an amount equal to its estimated workers compensation losses (limited to $100,000 per occurrence) into the AEX program. These risks and payments are pooled and transferred pro rata to the related captives. Through AEX’s pooling arrangement, the volatility in workers compensation losses on an annual basis for individual businesses can be reduced without increasing the expected cost of risk, and the captives are able to diversify their risks. Additionally, through AEX, captives may obtain sufficient unrelated risk, enabling the captive to qualify for federal tax status as an insurance company. This can open the door to significant financial benefits.
Medical Stop Loss
Artex also has a program that allows participating employers in an Employee Benefit Captive to self-fund their benefit plan by assuming the first layer of healthcare risks, and purchasing medical stop-loss coverage to cover any single large loss or aggregate loss that exceeds 125% of expected losses. A Group Captive insurer absorbs claims above the self-funded layer. Participants can determine the appropriate level of risk retention, offer a customized benefits plan and tailor a health risk management program. Employer participants use their combined purchasing power to leverage discounts from service providers such as stop-loss carriers, Third Party Administrators (TPAs), provider networks, and population health risk management vendors.
Public Entity Pools
Public entities, such as government agencies, school districts, county governments and municipalities, often participate in risk pools as a way to share losses and expenses. These pools extend coverage through underwriting and claim activities, and provide several advantages to participants. Artex offers full-service treasury, accounting and finance functions for public entity risk pools. We provide these services both as part of Risk Pool Administrators (RPA) and on a stand-alone basis. We keep the risk pool running smoothly, and provide timely, readily available and clear financial information.