“FIVE OF THE 15 CAPTIVES WERE LICENSED IN THE LAST FIVE
YEARS SO WE HAVE SEEN SIGNIFICANT GROWTH IN THIS AREA.”
ALANNA TRUNDLE, GCM
members paints a different story. As of October 1, KMG and Captive
Resources work with more than 4,000 members in their group captives,
up from nearly 3,800 in 2017, and up from 3,500 members in 2016.
Workers’ compensation is the most signifi cant line of coverage,
making up $1.48 billion in premium, or 67.15 percent of the total
premium among group captive programmes.
The feedback from the members of Raffl es and Affi nity has been
Doug Bawel, chairman and chief executive offi cer of Jasper Engine
and Transmissions in Jasper, Indiana, and president of Affi nity
Insurance, has been with Affi nity, working closely with KMG and Captive
Resources, since 2006.
“During that time we have dramatically improved our safety record
and today we are ranked in the top 3 percent of companies in the state
of Indiana. All three of our remanufacturing plants are at the Star level in
the Voluntary Protection Program (VPP),” says Bawel.
Privately held metal products manufacturing fi rm New Standard
Corporation has been a member of Raffl es for over 23 years.
Morton Zifferer Jr, chairman and chief executive offi cer of New Standard
Corporation, says the company has benefi ted from its membership in
a number of ways.
“The fi rst is that we have moved our very expensive, ever-increasing
‘fi xed cost’ model of workers’ compensation, along with our property
and casualty, broker-based insurance coverage, to a very controllable,
‘variable cost’ model.
“That has paid us huge dividends, on top of a continuously reduced,
year over year, experience-related premium base,” says Zifferer.
“Our 400-plus associates, as well as their collective families, have
lived lives that are quantifi ably much more safe and in turn, much more
secure, as we continue our hard work, to become an accident-free and
a wellness-centric organisation.”
Other signs of growth
Aside from the number of members and the growing premiums, there
are other aspects—such as total number of insureds and exposure
stats—that help illustrate growth in the sector.
Paul Fitzgerald, vice president at Aon Insurance Managers (Shannon),
manages a group captive in the real estate and self-storage industry,
which reinsures a US admitted carrier for the property contents
coverage offered to third party tenants.
The captive was formed in Cayman in 2006 with 16 shareholders, and
has grown to 27 shareholders in 2018.
It reinsures approximately 250,000 tenants throughout the US, and
GWP is projected at around $30 million for 2018.
The number of insured tenants is up from approximately 225,000 in
2017 (12.5 percent increase year on year), 200,000 in 2016, 176,000 in
2015, and 147,000 in 2014.
The GWP in 2017 was approximately $27.3 million, up from $22.6
million in 2016, $20.2 million in 2015, and $16.8 million in 2014.
Erin Brosnihan, executive vice president of KMG, notes that
Kensington’s group captive programmes have paid a cumulative total
of nearly $2 billion in distributions back to the member insureds since
“That is a phenomenal amount of money going back into the hands
of our clients, money that would have otherwise been retained by the
insurance carriers in the traditional marketplace,” she says.
“No wonder our clients view this as a real value proposition for their
For GCM’s captives, Trundle breaks down the exposure units—people
or possessions that may be subject to a loss that can be given a cash
value—in its group programmes.
The total workers’ compensation exposure units in GCM’s captives
are $45.5 million, an increase of 6 percent from the previous year. The
total auto liability exposure units are $31,000 which increased by 12
percent on the prior year. And fi nally, the total general liability exposure
units are $26 million, which increased 8 percent year on year.
22 cayman captive 2019