Multi-state manufacturer gets out of traditional insurance rut

RISK PROFILE:

Multi-state manufacturer with 200 plus employees, over 15 million in payroll, and a consumable product well represented in food service and grocery across the US.

CHALLENGE:

Member was stuck in the rut of a traditional insurance placement approach; marketing occasionally, taking unwarranted rate increases, and receiving minimal help from their broker or carrier with loss control and claims.

THESIS:

By joining a group captive, they could quickly save on front end premium by being priced based on their claims and not the carriers entire book of business. With additional resources, they could better prevent accidents leading to back-end savings via distributions.

RESULT:

Without factoring in significant distributions likely to be paid, Member has saved $ 1,450,000 in premiums against FLAT rates carried forward since 2017. Since joining the captive in 2018 they have also achieved significant revenue and payroll growth, compounding the benefit. Distributions will likely be substantial due to excellent loss performance, further improving their net cost savings.