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Regional Food Manufacturer
Challenge
Given their excellent loss history, this
company was tired of paying premiums
that were
reflective of the market cycles
rather than
their performance. The company was always under pressure to lower the
cost of goods
for their clients and they
needed to examine all expenses to support increasing their competitive position in
the marketplace.
Action
The controller conducted a full marketing
exercise in the traditional marketplace and
reviewed alternative financing, including a
large deductible, self-insured trust and a
member-owned group captive.
Results
While the traditional market lowered guaranteed premiums to obtain their business, the company made the decision
to join a homogenous group captive. The captive provided a significant
opportunity
to be rewarded for controlling losses
with return of up to 60% of the paid in
premium directly to the company. They
have experienced immediate results by
taking a proactive approach to controlling
their losses and reduced costs
by 40%.
The reward has extended to tremendous access to a network of
people and
resources that are not available in the traditional
marketplace. |
