Forming a Captive Insurance Company
Challenge: A multi-billion dollar contractor was looking for ways to cut costs and improve profitability in light of recent economic conditions. Brown Smith Wallace helped it establish a captive insurance company. We advised the company on how to set up its captive to serve as a reinsurer so that it would cover the layer previously retained via a large deductible policy. This enabled the client to document and capture all of its subcontractor's risks in order to pass the costs onto the subcontractors.
Solution: Our client realized annual savings of hundreds of thousands of dollars. The company was also able to achieve a 20% reduction in insurance costs, stabilize their insurance budget, achieve greater control over corporate deductibles, obtain direct access to reinsurance markets and improve claims handling and data collection processes.
For more information about our independent insurance consulting services, contact Bill Goddard, CPCU, at 314.983.1253 or firstname.lastname@example.org.