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Captives & Alternative Risk

We provide innovation at every turn, including bringing you creative risk solutions.

With Marsh McLennan Agency's exclusive captive programs and other alternative risk strategies, the possibilities are virtually limitless. You succeed by pivoting as needed.

Benefits of Captives & Alternative Risk

As the traditional insurance market continues to harden, we are at a pivotal point where it’s important to be proactive in exploring other risk transfer options to manage, finance, and transfer risk.

  • Reduced costs
  • Greater access to insurance and reinsurance
  • More control over managing risks
  • More efficient use of financial resources

 

Captives & Alternative Risk Coverage

Marsh McLennan Agency works with clients to determine if a captive solution is right for them.

Resolute Insurance

Offered exclusively to Marsh and Marsh McLennan Agency clients, and domiciled in South Carolina, Resolute provides more control to its members, greater stability in a volatile market, and the ability to realize savings through individual and overall member performance.

MMA Fleet Solutions

The FS Insurance Ltd. (Fleet Solutions) member-owned group captive, offered exclusively by Marsh McLennan Agency and Marsh, provides its member companies a more customized and stable casualty insurance solution than the traditional market.

Bistro Captive

Open exclusively to restaurant owners with favorable loss histories, Marsh McLennan Agency offers this alternative risk solution as an opportunity for owners to turn premiums into profit.

Frequently Asked Questions

Alternative risk is a catch-all term for any insurance program involving some level of risk sharing including high deductibles, self-insured retention, and profit sharing. Captives are a subset of alternative risk.

Captive insurance is an alternative option for many corporations and groups that want to take financial control and manage risks. These companies underwrite their insurance by participating in  captive ownership rather than paying premiums to third-party insurers. Marsh McLennan Agency is a leading captive insurer in the group captive space with over 600 clients in captive programs. We have access to a wide range of captive solutions, including programs exclusive to our clients. Our Captive Risk Practice is a dedicated team of professionals offering clients industry-leading expertise and captive insurance premiums.

A captive insurance company operates similarly to a traditional property and casualty insurance company. A captive issues policies, processes claims, follows all applicable regulations, files a property and casualty insurance company income tax return, and has profits and losses. If applicable, it also may have profits available to the insurance company owners. With an insured-owned captive insurance company, the owner(s) decide whether to retain or distribute the profits. The insurer and its shareholders retain the profits with a traditional insurance company.

Marsh McLennan Agency takes clients through a well-developed process from initial education to determining and implementing the best captive option. We also tap into Marsh McLennan's vast resources in the captive industry to offer cutting-edge captive management services and benchmarking data.

Captive insurance through Marsh McLennan Agency covers general liability, auto insurance liability, professional liability, third-party risk, and employee benefits. Captive services also protect against unique risks such as management liability, environmental liability, terrorism, professional liability, and extended warranty claims.

While every industry is unique, it is important to protect against potential risks that could interrupt and interfere with your operations. Preventive care is critical to running a successful company, and captive insurance through Marsh McLennan Agency is flexible to meet your organization’s needs.

We have proprietary captive services only available to clients of the Marsh McLennan family of companies. These programs are for high-performing companies in various industries. We also have specific programs for the construction and transportation industries. Outside of those solutions, we partner with several external captive managers. 

Marsh McLennan Agency specializes in these industries for captive insurance:

  • Construction
  • Health care
  • Hospitality
  • Manufacturing
  • Transportation 
  • Wholesale distribution

Here are the key indicators that your company would be a good fit for captive insurance:

  • Low to medium hazard operations
  • Stable loss ratio
  • Strong commitment to safety and loss control
  • Financially secure
  • Long-term vision

The primary captive structures are single parent captive and group captive insurance coverage. With a single parent, the captive insures the risks exclusively of the parent company and affiliated entities as the captive manager. The minimum premiums for such a program are about $2 million.

A group captive solution is a structure where several affiliated companies come together to share the risk. It allows smaller companies to participate in the underwriting risk when doing so on their own might be difficult due to their size.

Our captive insurance team and risk management experts can help you decide which new or existing captive insurance program option is best for your business.