Agency & Program
The primary motivation to create an agency captive is usually when a producer like you feels you’re getting a raw deal in terms of what your agency or you as the program owner get for placing your business with a commercial insurer. Commissions and any incentive agreements may fall short of covering your costs to produce a profit in return for providing your underwriting and transactional expertise not to mention your book of business’ better than average industry loss experience. Nearly two-thirds of the premiums collected by commercial insurers are generally used to fund loss payments, while the rest of the money covers their expenses and profits. Captives by comparison have far fewer expense components than these insurers have. Combine this expense savings with the profits you’ll get to keep instead of the insurers you otherwise place your business with, and an agency captive becomes a no brainer.
Why Form An Agency Captive?
With a captive of your own, your agency can also have more control over the insurance-related services for your book of business, such as safety and loss control, and claims administration. Additional reasons to start your own agency captive include profit sharing with loyal policyholders, market disruption, incentives for a valuable employee or to produce revenue for an association insurance program that you work with.
Characteristics of a Successful Agency Captive
- Profitable book of business – homogenous or heterogeneous.
- Ability to invest capital and resources.
- Willingness to take risk.
- Commitment to a long term plan.
You Have Us In Your Corner
Green Mountain has qualified and experienced consultants, underwriters and managers to help you build your insurance agency captive – from planning to active management. We also provide:
- Fronting, reinsurance and collateral negotiation
- Feasibility studies
- Underwriting and technical insurance consulting
- An application process that takes 30 days or less
- Costs that are comparably lower than traditional captives