4 Ways Captive Insurance Companies Provide a Competitive Edge

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Captive insurance companies are experiencing a surge in popularity at the moment. All over the world, businesses are waking up to the fact that this alternative way of dealing with the engorged cost of insurance premiums can give them a bit of a market advantage.

Today, we wanted to explore exactly what it is that gives captive insurers and the firms that use them a competitive streak. What is it about this time-tested way to underwrite losses that makes it so attractive to high powered firms? 

The 4 Top Ways Cell Captive Insurance Firms Help you Fight the Competition

There are a hundred small ways that cell captive insurers give your firm the competitive edge, but here are four of our favourites.

1 – They are Consistent

When all the members of the same cell are grouped together, they are grouped together by business type. You are then all part of the same system, with the same goals and the same proportionate losses. This means that the actual risk you experience can be levelled out and predicted to some degree of certainty. When the costs of this shared risk is spread across the cell, it allows a consistency you don’t get with outside insurers.

2 – Shared Data

By pooling together in this way, you are able to learn from your own mistakes, as it were. The captive employs its own negotiators, its own policy makers, and a focus on helping its own investors. While an insurance firm would just insure you and leave you to it, a business using a captive benefits from collected information shared between firms. This means everyone can get less risk over time.

3 – Proactive Risk Assessments

When you are involved with a captive insurance firm, you are instigating a company wide awareness of risk. This starts with the risk assessment process and extends right through to the finished product. When you have access to the aforementioned shared data, you can then predict what will cause risk, and what will save you money, in the long term. Proactive risk assessment means you have a corporate culture that is more aware of potential problems, resulting in a safer working environment for everyone. 

4 – Inspire the Market 

Captive cell insurance isn’t just good for your business – it’s good for the whole market. Why? Because the greater the number of businesses who turn to this type of self-insurance, the less business there is for standard insurers to compete over. This means that regular insurance providers need to lower their prices to keep up with these savings. Ultimately, this means that every business that decided to use a cell captive program is saving another business money in standard insurance premiums… Just one more way that cell captives are keeping the whole market on their toes!

Where Can I Get Cell Captive Insurance for my Business?

You can call Talisman Casualty insurance Company LLC for insurance needs if you want to try going captive with your business. With advantages everywhere you look and savings to be made on a monthly basis, there really isn’t any point in passing this one up.