For large corporations, the use of captive insurance has had a long and successful history. Big companies could help ‘steer the ship’ along their voyage as a wholly-owned subsidiary. They could enjoy the advantages of more reasonably priced policies that would otherwise be unavailable. They could improve their risk management and ultimately lower their taxes.
In recent years, according to the Journal of Accountancy, small and mid-sized companies have also realized that group captive insurance is very attractive and scalable for their needs too. These smaller companies are enjoying many perks: risk management tools and strategies that enable the company to inure risks that were previously impossible to cover, tax planning tactics with favorable rates and a reduction in premiums.
Accountancy experts roundly acknowledge the enticing benefits that co-exist with smaller captives. However, these professionals warn that businesses sometimes forget that the captive “must operate as a true insurance company.” This fact underscores the critical need for companies to partner with an experienced and reputable captive insurance management company to ensure optimum operations and return on investment. eMaxx can make this happen for any size business.
eMaxx provides alternative risk captive insurance solutions for over 150 companies—big, small and mid-sized—across the U.S., specializing in transportation and utilities. Clients become corporate members of the group. As bonafide partners, these client members have a vested interest in eMaxx’s success. They take control of their own destiny with hand-selected and vetted coverages. In turn, they achieve lower costs through risk management technology platforms, proactive loss prevention and safety programs, claims oversight and litigation management. Ultimately, they share in the losses and secure tremendous profits.
What specific benefits of captive insurance can members expect when they partner with eMaxx? Members receive underwriting profits and dividend returns. By participating on the Board of Directors and Governing Committees, members proactively manage their own program. Member also enjoy lower program operating costs thanks to a sponsored reinsurance structure. Another huge perk is that members are no longer beholden to unexpected swings in premium rates because members can control rates. This is especially relevant in today’s unpredictable market of supply-chain problems, pandemic-related personnel health issues and an unprecedented shortage of commercial drivers. Finally, members do not have to accept a one-size-fits-all policy. Instead, they can enjoy tailored coverages for their insurance program. This customization carries over to an array of claims management and loss prevention and safety programs that are available to members 24/7. This has resulted in a reduction of frequency and severity of claims with a significant drop in existing programs.
From price stability to expert claims handling and policy customization, eMaxx captive insurance aligns with today’s market trends for most businesses, no matter the size. Contact eMaxx directly or through affiliated independent agents and brokers to learn more.