MAKE INSURANCE WORK FOR YOU

How would you like to participate in a strategy which will reward your company’s effective risk management (ERM), identify and fund catastrophic risk, build financial value for your business’ future growth, and qualify for a tax-efficient expense in doing so?

Meet Captive Alternatives’ Private Insurance strategy for ERM, bringing Fortune 500 risk management solutions to successful small companies just like yours, leveraging your assets to protect and nurture your business.

Our innovative Private Insurance strategy provides you with a way to fund future losses while allowing investors to participate in the insurance profits that would otherwise be lost to big insurance.

Here’s how it works: we learn about your business, its major risks and underwriting information, then review your risk financing options. You receive a detailed insurance feasibility report backed by actuarial calculations.

This shows the coverages and insurance limits available, along with associated costs and timelines for each option. You select the coverages you want and the timeline for their implementation. Your company will procure risk insurance from a licensed and regulated carrier and an investor will purchase a bond from an associated entity.

As a client, you’ll have risk reviews and renewal decisions performed on an annual basis, at which time you can determine whether to continue plan operations, adjust your participation, or stop and wind down your plan.

“You select the coverages you want and the timeline for their implementation.”

Premiums invested

With traditional insurance, you pay a premium to your carrier and receive a policy. The insurance company binds the coverages and transfers a portion of the risk to a reinsurance company. The reinsurance company covers the insurance company in the event of any catastrophic policy-linked claims. Your premiums are invested and the end-of-year surplus is saved by the insurer for future claims, company expansions and acquisitions, or returned to shareholders.

With our unique Private Insurance structure, your premiums are invested and the end-of-year surplus is saved for future claims or returned to bond investors like you via an insurance-linked security.

Is this right for you and your company? Private Insurance makes sense for companies:

• With gross revenue exceeding $3 million a year or more;
• With substantial unfunded “hidden” risks;
• That are closely held with growth plans;
• With year-over-year profit margins;
• That wish to expand their ERM strategies;
• That have the capacity to take on an additional tax-efficient expense without affecting their solvency;
• With complex operations and real risks;
• That would like protection against potentially catastrophic losses; and
• That would benefit by rewarding themselves for effective risk management by an investor participating in the underwriting profit and investment income of the company’s paid premiums.

Private Insurance enables businesses and organizations like yours to directly procure insurance coverage for selected risks, to transfer high exposure to third parties, and to designate an investor to participate in this innovative profit-sharing program.

The result? Your business is protected, and as an investor, you participate in a unique profit-sharing structure and build tax-efficient assets not only to cover your company, but to assure your future.

Carter Sims is director of marketing at Captive Alternatives. He can be contacted at: csims@captivealternatives.com