Property and casualty insurance is now marked by more volatility, stricter underwriting, and steady premium hikes. Many organizations find that the traditional insurance market no longer values strong risk management or long-term discipline. As a result, more businesses are seeking new solutions.
This change is driving greater interest in group captive insurance, an alternative approach to risk financing that enables businesses to take control over their costs, claims, and results.
What Makes a Group Captive Different?
A group captive is an insurance company owned by its participating members. Members control the captive and are also the principal beneficiary of underwriting profits and corresponding investment income. Captives are an excellent source of alternative funding for businesses with a strategic view of risk and strong claims history.
Group captives are built on transparency, shared responsibility, and common goals. Members are not just policyholders — they are owners with a direct interest in how the group performs.
What’s Fueling the Growth of Group Captives?
Several market trends are making group captives more appealing:
- Premium increases and reduced capacity in the traditional insurance market.
- Inconsistent renewal terms, even for organizations with strong loss histories.
- Increased emphasis on ESG and safety.
- Captive success stories across a wide range of industries.
For organizations that feel like just another risk to insurers, captives offer a way to take back control.
Why Businesses Are Turning to Group Captives
Insurance Spend Becomes Strategic Capital
In a group captive, favorable loss experience doesn’t just add to a carrier’s profits. Members can recapture underwriting gains and investment returns over time, transforming insurance spend into a long-term financial asset.
Stronger Risk Management Drives Better Results
Captive members’ results are interconnected, fostering strong peer accountability to maintain safe operations and proactively control loss.
Coverage Reflects Real-World Risk
Traditional insurance often forces businesses to accept standardized coverage that doesn’t fit their exposures. Group captives offer greater flexibility in program design, allowing members to tailor coverage to match their actual risk profile.
Greater Visibility and Control
Captive members can see data and insights about claims and losses that are often hidden in the traditional insurance market. This transparency enables smarter decision-making and more predictable results.
Own Your Risk. Elevate Results With CBIZ.
In the group captive arena, what sets CBIZ apart is our education‑first model paired with rigorous, pre‑commitment analytics and hands‑on operational support. We guide prospective members through clear feasibility work, including loss‑pick modeling, multi‑year pro formas, and collateral transparency, so they understand capital requirements, dividend potential, and downside scenarios before joining.
Our access to multiple captive platforms enables structure selection based on fit rather than a one‑size solution, while industry‑specific risk engineering and proactive claims advocacy help drive the outcomes that captives depend on.
If rising premiums have you questioning the value of the traditional insurance model, it may be time to consider an alternative solution built for performance-driven organizations. Complete our checklist to determine if a captive is the right fit for your organization.
Ready to talk to an advisor? Connect with our team to evaluate your readiness today.
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