What is a Group Captive?

For years, large companies have elected to participate in alternative risk transfer strategies like self-funding. Mid-market companies now have a similar option in a group captive. A group captive is an insurance company that is owned by its participants. Group captive solutions focus on what survey after survey shows to be the most important and desirable employee benefit – but also the second largest employee expense after salaries and wages – health insurance. They take advantage of the economies of scale and negotiating strengths inherent in a large census to reduce insurance costs, lower risk profiles, and optimize tax savings. By pooling organizations with similar interests and/or risk profiles, these benefits are now available to middle market companies, non-profit agencies, groups and associations.

Nearly 50% of major U.S. companies employ one or more captives.

This quick explainer video from Roundstone Insurance — a captive insurance management service and one of the nation’s premier captive marketplace experts — explains a handful of the many benefits of self-funding.

To read more about the benefits of a health insurance captive, visit: Benefits of a Health Insurance Captive.

For more detailed information about the benefits of participation in an group captive program, or to discuss which one is right for your organization – complete the form below and we’ll get right back to you.