The new face of captives and alternative risk solutions

Your Gallagher team, in collaboration with our captive partners including Artex Risk Solutions, has access to an open market gateway comprehensive risk programs, competitive capacity and wholesale options to meet your specific risk exposure and financial objectives.

Alternative risk solutions are available to suit many industries and include property, casualty, professional and specialty lines. Whether an alternative risk transfer program is the right choice for your organization depends upon the organization’s threshold for addressing risk and controlling it.

Alternative Risk offerings and capabilities include (but are not limited to):

  • Guaranteed Cost
  • Proportional ownership in group captive solutions
  • Rent-a-captive
  • Risk transfer
  • Risk financing alternative
  • Self-insured options
  • Insurance pools
  • Custom-designed national accounts programs
  • Temporary staffing and professional employer organizations
  • Employee benefit captives
  • Bermuda market access
  • Captive design and management services
  • Professional Employer Organizations (PEO) Solutions
  • Program solutions
  • Public entity and scholastic products

The Bermuda insurance market is the second-largest insurance and reinsurance marketplace in the world. With over $100 billion of capital and surplus plus more than 125 major insurers and a history of providing competitive and creative risk solutions, Bermuda has become the world's most dynamic insurance market.

Arthur J. Gallagher & Co. has had operations in Bermuda for many years. Our core expertise in that market is focused primarily on alternative risk transfer and excess insurance placing excess insurance and reinsurance above retained and underlying layers with various markets.

Our Gallagher team provides a variety of risk analysis and claims advocacy services through our captive partners and Alternative Risk teams that are specifically designed to scrutinize risk, help mitigate losses and increase the qualitative depth of a risk transfer program. Our analytics experts include actuarial, financial, claims and loss control professionals that will map out a comprehensive evaluation of a client's specific risk circumstances to provide adapted solutions to complex risk questions. This data will allow you to more accurately evaluate risk, optimize structural efficiencies and facilitate more informed decisions to maintain long-term viability and cost stability.

Some of our evaluations and analytics include:

  • Captive feasibility
  • Captive utilization
  • Strategic risk analysis
  • Retention level analysis
  • Surplus adequacy and utilization
  • Loss portfolio transfer or commutation negotiations and more

As insurance costs remain unpredictable, a growing number of corporations, groups and associations are looking to have more control over their expenditures. Our alternative risk professionals will evaluate, create and deliver the optimal retention solution for your unique risk management needs. Our team is proficient in all disciplines of alternative risk transfer and captive management insurance and reinsurance. We respond quickly to changing market conditions and pay meticulous attention to critical details and opportunities for efficiencies.

Our captive management services in a variety of onshore and offshore domiciles (including Arizona, Bermuda, District of Columbia, Grand Cayman, Hawaii, Nevada, South Carolina and Vermont) develop services and solutions such as:

  • Feasibility analysis, domicile evaluation, business plan preparation and license application.
  • Arrangements for fronting and reinsurance placement.
  • Single-parent, group, association, rent-a-captive and risk retention group formation, operation, financial management and regulatory compliance.
  • Ongoing consulting support for addressing all regulatory and accounting considerations, structuring and securing the program, sustaining ongoing risk financing objectives and assisting in the service provider selection process.

Participating as an owner-member of a captive provides distinct advantages for a wide range of companies. Most importantly, it increases an organization’s control over insurance costs. Coverages provided by a captive typically include workers compensation, general liability, automobile liability (owned and non-owned) and automobile physical damages. Structured correctly, captives can offer the following benefits:

  • Improve the insurance program, with enhanced coverages, marketability and cost controls.
  • Ensure continuity of coverage through a simplified renewal process, so there are no surprises from year to year.
  • Strengthen the company’s bottom line by reducing fixed costs as well as costs associated with contributions based on the company's expected losses and the ability to retain investment earnings.
  • Minimize risks through heightened safety awareness and emphasis.

Professional Employer Organizations (PEOs) provide clients with operationally efficient and cost-effective outsourcing for the management of key administrative functions such as human resources, employee benefits, payroll, unemployment and workers compensation issues. Given the increasingly complex aspects and regulatory changes relative to employee-related issues, it is important to be confident that your are working with professionals who have the expertise to partner with our PEO providers that are experience in administering their programs. Our team members are considered PEO experts even to the point of conducting training classes for state regulatory agencies.

Some of the services we provide includes:

  • Employee recruitment, interviewing and selection
  • Benefits administration
  • Labor regulatory compliance and risk management
  • HR training, safety training and employee development
  • State and federal tax management and administration programs
  • Workers compensation

Consider the advantages and options of renting or owning a captive. Some of our current programs include:

  • Premier Comp Plus — Heterogeneous: Al, GL, WC
  • StaffGuard — Temporary Staffing Firms: WC
  • Artex Light — Guaranteed Cost WC, AL, GL for accounts $100,000 - $1,000,000 (+)

Our programs feature:

  • A-rated carriers
  • Premiums based on individual loss history
  • Non-assessable programs
  • Underwriting profit is returned to the insured

Preferred account characteristics include:

  • Target premium of between $150,000 and $1 million
  • Organizations seeking to move from guaranteed cost to an alternative risk transfer program
  • Management commitment to loss control and workplace safety
  • Companies with solid financial performance
  • Wanting to take control of insurance costs