Nurse Triage

7 February 2017. Safety and loss prevention are a cornerstone of the captives that Captive Resources supports. As such, we recommend and oversee a broad array of related services designed to help captive member companies control their losses.

One such service is Nurse Triage. If your company is not taking advantage of Nurse Triage, it’s missing a great opportunity to ensure proper care of injured employees, while minimizing workers’ compensation claims. Nurse Triage is not case management; it occurs pre-claim and works like this: An injured employee comes to his/her supervisor and the supervisor calls the triage hotline. From there, the supervisor gives some very brief information to the RN on the line, who then speaks directly with the employee. From our experience, and that of our friends at Medcor, the preeminent provider of Nurse Triage services (www.medcor.com), roughly 40% of the calls taken by the triage nurses DO NOT result in workers’ compensation claims. In most cases, the employee is given “self-treatment” instruction by the nurse, all based on medical protocols that are time tested and certified. So, imagine if your emergency room visits could be reduced by 20%, or even 40%. At an average cost of nearly $1,000 per medical only claim, that adds up fast. With a cost per call of less than $100, the potential savings is significant. Additional benefits include relieving supervisors of the job of playing triage specialist, instead, allowing a medically trained nurse, available 24/365, to assist the employee with self-treatment (where appropriate); and employees that know they will be treated well by a nurse who has no incentive or disincentive to keep them from an ER visit or send them to an ER…the nurse simply wants the best outcome for the employee.

CAPTIVE RESOURCES TO MOVE HEADQUARTERS – Will Consolidate Properties and Relocate from Schaumburg

24 January 2017.  Captive Resources, LLC recently announced that it has purchased 1100 N. Arlington Heights Road, Itasca, IL and will relocate its headquarters from Schaumburg, IL.  Colliers International’s Chicago-based Office Advisory Group represented Captive Resources (CRI) in the purchase; the transaction closed on November 21, 2016.

CRI currently owns and occupies two Schaumburg properties at 201 East Commerce Drive and 55 East Commerce Drive. A consolidation of these two properties is planned and CRI will relocate all employees to the 1100 N. Arlington Heights Road property in the third quarter of 2017. The Schaumburg properties will be made available for sale leading up to the company’s relocation to Itasca.

George Rusu, the company’s Chairman and Chief Executive Officer, states that CRI will invest significant capital into the renovation of 1100 N. Arlington Heights Road in order to make it a world-class headquarters facility. Additional conferencing and training areas will be added, and the fitness and food facilities will be expanded. CRI will occupy approximately 100,000 square feet on the first four floors with third-party tenants occupying the remainder of the building.

Rusu added, “The 1100 N. Arlington Heights Road property presented an opportunity for Captive Resources to increase efficiencies with a consolidation, control growth, and also own a property at a very attractive operating cost relative to leasing.”

Originally constructed in 1999, 1100 N. Arlington Heights Road is a 150,000 square foot, six-story, Class A office property located on the northwest corner of Thorndale Road and Arlington Heights Road.

A New Value-Added Service for Group Captive Members and Their Brokers: Broker Resources Insurance Services, LLC

17 January 2017.  Broker Resources Insurance Services (“BR”) is a wholesale broker dedicated to placing Umbrella/Excess/Buffer placements for group captive member-insureds working with Captive Resources. BR is a joint venture between Captive Resources and The McGowan Companies, a privately owned managing general underwriter, program administrator, and wholesale broker located in Fairview Park, Ohio. McGowan operates across the U.S.

Mission. BR was formed in April, 2016, to differentiate group captive members to the Umbrella/Excess marketplace as higher quality insureds with an elevated focus on risk management. As understanding of the quality of the member-insureds increases with our marketplace, we anticipate member-insureds will benefit from additional expanded terms, differentiated pricing, and increased stability of premiums.

BR offers access to 25+ markets, both standard and Excess & Surplus lines.

Broker Resources is only available to retail agents and brokers that work with Captive Resources.

Key Advantages.  Key advantages of working with BR include:

  • The ability to access both Standard and E&S carriers;
  • Capacity of $300 million or more;
  • Financially strong carriers;
  • Competitive pricing and broadened terms & conditions;
  • Simplified submission process – captive program application plus minor additional information is required.

What Makes Brokers Resources Different?

  • Revenue neutral to retail broker;
  • Focus on group captive member-insureds;
  • Panel markets (7) offer increased crisis management limits of $500,000.

Qualifications for Micro Captives

10 January 2017. If you would like to more effectively manage your company’s risks, looking into captive insurance options may be particularly beneficial, including forming a micro captive insurance company to cover a portion of your company’s risks. Smaller insurance companies with annual premiums under $2.2 million in 2017 (adjusted for inflation), may qualify as a micro captive and only be taxed on net investment income at the captive level. However, there are other tax qualifications that must be met in order to form a micro captive.

Qualification as an insurance company – For tax purposes, your captive must qualify as an insurance company. This means that your captive must be operated and regulated as a real insurance company, with actuarial/underwriting premium support, and it must have the tax characteristics of risk shifting and risk distribution. There are also minimum capital requirements.
Pay taxes in U.S.
– Your captive must be a United States taxpayer; this means that your captive’s domicile must be in the U.S., or it must elect and qualify to be taxed as a U.S. insurer if it is domiciled offshore.
Diversification requirements
– Either 1) No more than 20 percent of the net written premiums (or, if greater, direct written premiums) of the captive is attributable to one policyholder (related entities considered one policyholder), or 2) No spouse or lineal descendant can own (directly or indirectly) more than two percentage points in the captive than in the underlying insured business.

A micro captive can write custom insurance policies that fit the specific needs of the insured entity. If you believe your company would benefit from establishing such a captive and would like more information on micro captives, Captive Resources has the services you need; please contact Ernie Achtien at eachtien@captiveresources.com or Amy Lewis at alewis@captiveresources.com.

Captive Resources Well Represented at 2016 Cayman Captive Forum

January 4, 2017. The Insurance Managers Association of Cayman (“IMAC”) organizes and hosts the world’s largest captive-specific conference, the Cayman Captive Forum, which is also Cayman’s largest annual conference. The 24th annual Cayman Captive Forum was held November 29-December 1, 2016 and attracted nearly 1,500 attendees, including captive directors, CFOs, risk managers, service providers and captive managers from around the world, to discuss the most pressing issues in the captive insurance industry. As in previous years, both Captive Resources (CRI) and Kensington Management Group, Ltd. (KMG) were well represented and received at the Forum. CRI’s President, Nick Hentges, Senior Vice President, Mike McManus, and Ed Keis, Chief Financial Officer of DeCrescente Distributing Company, presented a session entitled “One Company. Four Captives. One Source.” DeCrescente Distributing is a member of Summit Insurance Ltd, Everest Property Insurance Company (EPIC), Well Health Insurance Ltd., and is an owner of an 831(b) micro captive insurance company. The panel discussed current ownership and participation in four distinct captives, spanning multiple lines of insurance coverage, utilizing common financial planning and risk management concepts. DeCrescente Distributing joined its first captive in 1998, and provided the session attendees with a perfect example of the power of group captives for middle market companies.

Over the 3 day conference, there were 34 educational and motivational sessions filled with tutorials, inspirational speeches, and panel discussions on issues affecting the captive insurance industry, given by 90 different speakers. This year’s keynote speaker, Diana Nyad inspired the crowd with her courage and sheer determination to “find a way,” with the power of the human spirit. At the age of 64, on her fifth attempt, Diana successfully fulfilled her lifelong dream of completing the 110-mile swim from Cuba to Florida on September 2, 2013. The conference also afforded attendees excellent networking opportunities.

The Cayman Islands Monetary Authority (“CIMA”), Cayman’s regulatory body, reported that as of September 30, 2016, CIMA is regulating 711 Class B, C and D insurance companies and managing US$13.9 billion in total premiums and US$59 billion in total assets. The new Head of Insurance Supervision, Ruwan Jayasekera noted that 33 new captives were formed in the Cayman Islands during 2016, as of September 30, 2016, with another 15 new licenses being expected before the end of the year. Although Cayman has seen year on year growth in the Insurance industry, the number of captive formations year to date, has made 2016 its busiest year since 2011. CIMA is committed to working closely with the captive industry to ensure that the jurisdiction remains attractive to quality business, for both existing and potential licensees. With over forty years of experience in the insurance industry, Cayman is a jurisdiction that is second to none when it comes to financial services, especially captives.

The 2017 Cayman Captive Forum is scheduled for November 28-30 at the Ritz-Carlton, Grand Cayman.

Formation of Captive Insurance Companies: What Will Be Insured?

captive insurance companiesForming captive insurance companies can be a lengthy process, but can be extremely beneficial in the long run. When forming a captive insurance company, one of the most important things to analyze is what risks the captive will insure.

  • Identification of risks – During formation of a captive insurance company, you will need to identify what risks the captive will insure. In the normal course of business, you are likely paying premiums to one or more insurance companies to protect specific risks. When forming a captive insurance company, you will want to determine which risks you would like to insure with your captive and what risks should remain with commercial insurance companies. You may also want to determine whether there are risks currently not insured by your commercial carrier that you may want to insure through your captive.
  • Include risks specific to your company – Real risks to your company should be included in your captive insurance plan, but you may want to select risks that have a relatively low frequency of occurrence. At the same time, you do not want to include risks that would never pertain to your company. This will help keep costs low and often premiums paid to the captive in excess of operating expenses and claims can be transferred to a surplus account to be used for investment opportunities.

If you are interesting in forming a captive insurance company, you should seek help from a company that can offer advice and consulting for captive insurance companies. Captive Resources has been around for over 30 years, and has helped companies control their insurance costs by becoming insurance company owners. Visit CaptiveResources.com for more information on our advising services for your specific needs today.

Benefits of Group Captive Insurance

captive insurance services

Do you feel like you could get a better insurance premium for your company, but aren’t sure where to look? Have you ever considered group captive insurance? A group captive is an insurance company that is owned by its policyholders. With group captives there is more emphasis on risk control and loss prevention practices. They are usually designed to cover expected losses in terms of general liability and workers compensation. If you are tired of paying high premiums for insurance, the first benefit of captive insurance services is lower premiums.

Lower Premiums

The cost of claims, profit of future investment, and overhead are just a few of the factors that commercial insurance companies base their premiums off of. An owner of a captive insurance plan can bypass expenses such as these and use it as a great opportunity for investment. With captive insurance, you can use more precise data to find out a more realistic and lower premium for your company.

More Risk Coverage

There may be certain risks that a commercial insurance company is unwilling to cover. If you are covering your own risks, you can provide coverage for risks that commercial companies would not. You can achieve this through an investment fund that you create for insurable risks. At the end of the year, if there are fewer claims than you expected, the money in that fund will be profit for your business.

Would you like to learn more about captive insurance services for your business? Visit CaptiveResources.com today to inquire about captive consulting services and learn best practices for group captive insurance.

Welcome to the Captive Resources, LLC Blog

captive insurance industryWelcome to the Captive Resources, LLC Blog. Following the mid-1970s insurance crisis, when business owners had trouble obtaining insurance coverage or were forced to pay inflated insurance premiums for basic coverage, Captive Resources was born as a solution to that problem. The early 1980s saw the creation of one of the first member-owned group captive insurance companies, Captive Resources, LLC. Now known for providing captive consulting services exclusively to member-owned group captives, Captive Resources is one of the largest, most experienced and most successful advisors to group captive insurance companies in the United States.

For over 30 years, Captive Resources has provided the captive insurance industry with the necessary tools to control insurance costs and develop efficient safety and loss prevention practices. We also offer advice on operational insight, investment services and more. Group captives have relied on our insurance specialists to control insurance costs and increase their profits year after year. Wouldn’t you like to increase efficiency in your group captive?

If you would like consulting and you are in the captive insurance industry, Captive Resources has the services your company needs to thrive. Visit CaptiveResources.com for more information on how we can help your company meet insurance goals.