More control and greater potential for financial reward are two benefits of captives. But you may be wondering if it’s worth making the switch. If you have a strong risk management program and history of low claims, the likely answer is “yes.”

In an earlier blog, we shared a quick overview of captives and their advantages. MJ offers single-cell, group and employee benefits captives, and they’re a great way to self-insure and reward your company for following best practices and instilling a culture of safety.

For some, the very thought of “self-insuring” feels overwhelming. Yet it’s not as big of a leap as you might suspect.

First of all, companies who are a good fit for a captive are already engaged and invested in risk management. They’re already walking the walk, but the insurance company is reaping the rewards of that good behavior. With a captive, you profit from your own smart operational choices.

Switching to a captive also opens the opportunity for more options. You select only the insurance you need and forego the coverage you don’t. There are no more predetermined plans or policy details that don’t apply to you just because they’re part of a program designed for the masses.

You get more data with a captive too! Including hard numbers about your insurance performance as well as networking opportunities and collaboration with other like-minded businesses if you’re in a group captive. This added information and ideas can be a powerful way to streamline your decision making and further improve your risk reduction strategies.

A captive also creates an element of accountability, which most leaders appreciate. It’s easier to see—and fix—the disconnects that may be causing more claims. And if your captive premiums do change, you know exactly why, because everything is based on your own performance, not the collective performance of an unrelated group of companies in a shared traditional insurance plan.

We often compare the advantages of a captive to the advantages of owning versus renting. You’re in control. You design every detail. And if you do earn a profit, how it’s used is entirely up to you. As examples, you can apply it right to your bottom line, share it with employees or reinvest it into more coverage, risk management upgrades or future premiums.

Ready to explore more? We’re happy to answer any questions about our captive solutions and help you select the right option based on your current performance and long-term goals. Contact us today!