September 20, 2018

The Fundamentals of Group Captives

What is a captive?

At CBIZ Stoltz, we define group captives as independently owned and operated insurance companies that provide insurance to, and are controlled by, their owners. A captive insurance company analyzes and insures the specific risks of its owners, typically reducing operating costs, and returns underwriting profits and investment income to them in the form of dividends.

Homogeneous Captives 

Captive groups whose members represent the same industry, such as agriculture, building contractors, construction, energy, manufacturing, health care or trucking companies.


Captive groups whose members are from diverse industries collectively pooled together.

CBIZ Stoltz, creates and administers both homogeneous and heterogeneous captives. However, all share the common objective of seeking better control of their insurance costs.

Why should you consider a captive?

It’s simple. As a member of a group captive, you are no longer susceptible to the ever-changing cyclical nature of traditional insurance providers. Other benefits enjoyed by members of group captives include:


The price of insurance coverage purchased in the conventional market can often times include mark-ups to pay for the insurer’s acquisition costs, marketing expenses, higher commissions, administration and overhead. Such pricing is specifically designed to deliver profit to the insurer’s bottom line. In a group captive, the goal is to minimize those costs and enhance your bottom line.


A group captive can purchase strategic insurance products that allow each captive member to manage predictable losses while transferring potential catastrophic losses. For captives supported by CBIZ Stoltz, this leads to improved loss control and greater awareness of the factors that commonly give rise to losses so that they may be reduced and often prevented in the future.


As a member of a group captive, you are rewarded for controlling losses and claims by receiving dividends and investment income. Your loss experience directly determines your dividends and future premiums allowing you to be more competitive in the marketplace.


CBIZ Stoltz provides an opportunity for businesses to control their insurance and risk management through ownership. Because members are owners, they can customize insurance coverages to better meet their needs and reduce their long-term cost of risk.


Turning to an independent captive advisor such as CBIZ Stoltz, means you spend less time addressing insurance issues and more time running your business. We will help you implement, coordinate and facilitate the growth and continued success of your risk management program.

Who should consider a captive?

A member-owned group captive is an ideal form of alternative risk financing for companies that share such qualities as:

Long-term financial strength and stability
Management teams committed to safety and with solid safety programs in place
A loss history that is better than average in their respective industry
Minimum casualty premiums of $150,000. However, our group captive members typically have annual premiums of at least $250,000.
How can you get started?

CBIZ Stoltz makes it easy for you to get started in a group captive. Our dedicated staff of insurance industry professionals will work with you one-on-one to understand your company’s specific insurance needs and goals, then structure a program to best meet them.


Every year, business owners and executives invest a substantial portion of their revenues to insure the health and safety of their employees and companies. As one of the largest captive advisors in the nation, we have helped hundreds of businesses achieve their risk management goals.

For more information on how captives work, our services and success, or to speak with a business in your industry that is benefiting from captive membership, visit us at www.cbiz.com

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