No one in business likes a ‘helter-skelter’ market, but unfortunately in the commercial insurance arena, the past few years have been just that. MarketScout Corp. reports that the composite rate for U.S. commercial insurance increased by 5.1% in the fourth quarter of FY 2022. Commercial auto rates have risen, business owner policy rates have ticked up and commercial property insurance premiums saw the biggest hike—all at the end of 2022. Financial experts agree that increased competition in the general insurance market overall coupled with skyrocketing claims costs and rocky investment returns have intensely hurt profitability. With a reduction in market capacity, some insurers have left the market altogether, seeking less turbulent pastures elsewhere. But not eMaxx. As the nation’s leading captive insurer, this industry frontrunner in commercial insurance continues to weather the stormy climate and offers even the most difficult-to-insure clients a superior and innovative option.
What is a captive insurer? The CPA Journal does a good job of defining this type of agent: “a subsidiary formed by a private company to finance its retained losses in a formal structure under the guidance of an appropriate state insurance department.” Sounds quite complicated but it really is not. A more applied answer to the question what are captive insurers has a lot to do with supplementing the commercial coverage a business may already have. This in turn allows companies to hang onto the funds that would be spent on out-of-control premiums that are currently causing instability in the market.
Because of the unpredictable rate climate of the past few years, captive insurers often ‘come to the rescue,’ building more capacity for their clients with dynamic and innovative solutions. The eMaxx team has decades of experience working to improve commercial insurance performance through state-of-the-art tech-enabled programs that enhance risk management—which is key to the entire success of a captive program. This has been especially beneficial in niche markets with whom the team partners: towing, transportation, energy, utilities, waste, recycling, construction, crane & rigging and more. The partnership is ideal for companies that want to take financial control of their own destinies and use their own knowledge of their industry to manage risks by underwriting their own policies instead of paying exorbitant premiums to third parties.
If your company—small, mid-sized or large—is researching who are captive insurers, then your answer can be found in the professional, trusted and respected team at eMaxx. Contact us today.