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An Alternative Risk Solution for the
Human Services Industry
What is a Captive and How Does it Work?
The Challenge
Maintaining financial stability in the human services field has become increasingly difficult. Management teams recognize that payroll, healthcare and business insurance are the largest areas of expense. The challenge is to realize savings in insurance costs that reach corporate bottom lines. A focus on risk management practices, along with alternative risk financing options, could ensure an agency’s financial stability.
The Solution
For many years, other sectors of the non-profit world, such as hospitals and educational institutions, have benefited from utilizing captive solutions. Providers who join may be able to reduce and stabilize insurance costs, exert control over claim settlements and investments, recapture investment income, and better manage their risk. Joining a captive can result in large savings.
“The captive allows its members to be immune to drastic insurance market fluctuations and as a result to provide enhanced levels of client service by better managing the cost of risk.”
Dennis Silvia
Captive Consultant
Cedar Consulting, LLC
A "captive" operates as a closely-held insurance company formed to insure some or all of the risk of its members.
Captive insurance programs provide an alternative risk management solution and risk financing technique to its participants.
There are many types and sizes of captive programs available. The Captive Advantage, LLC (TCA) offers our members a group captive solution as described below.
In the TCA group captive, each member pays its insurance premiums to the fronting company, which pools the premiums and cedes the majority to the captive.. Each group member is an owner in the captive, with the potential to enjoy substantial insurance savings. .
