McGowan Captive Managers

Alternative Risk Structures “Captives” —
Privately Owned Insurance Companies

WHAT ARE PRIVATELY OWNED INSURANCE COMPANIES?

A privately owned insurance company is a closely-held insurance company established primarily to insure the risks of its parent company and affiliated groups. Day to day operations are controlled by the owners, who will also be the principal insureds. These operations include: Underwriting, policy placement, claims decisions, and investment policy and strategies for your insurance company.

McGOWAN CAPTIVE MANAGERS’ ALTERNATIVE RISK, ASSESSMENT AND FEASIBILITY STUDY

There are many strategies and reasons to form a Captive, but they are not for just any situation. Our experienced team uses our “Decision Gateway” methodology to save time, and money, in order to assess the viability of your own insurance company, or other structure, the reasons to create one, and the implementation time and cost involved. We give decision makers the substantive information they need quickly, efficiently, in order to make decisive decisions… Go, or No-Go.

OUR ALTERNATIVE STRUCTURES TEAM

McGowan Captive Managers’ Alternative Structures team is experienced in every aspect of creating, implementing, and managing Captives in order to achieve the insurance strategy, and the business strategies, of our clients. We are licensed in all 50 states. MCM manages our Alternative Risk Solutions domiciled anywhere in the United States or internationally.

The Benefits Of Your Own, Private Insurance Company (“Captive”)

COST REDUCTION/STABILIZATION

Captives are often formed by insureds that have grown tired of the vagaries and undulations of the retail insurance market. Bypassing the retail insurance market can often lead to cost savings through the elimination or reduction of profit loads, broker commissions and administrative costs.

CAPITALIZING ON A BETTER THAN AVERAGE CLAIMS EXPERIENCE

Why subject yourself to the brutal rate making policies of commercial carriers? Often, the parent company is better served retaining the risk inside the captive as opposed to subsidizing the broader risk pool’s poor experience.

PROVISION OF COVERAGE NOT OTHERWISE AVAILABLE

Captives can often provide coverage for unique or specific risks that would not otherwise be transferable in the retail market.

TAX TREATMENT

Captives are able to accrue tax deductible reserves for unpaid claims, whether known or estimated.

Reach Out to Us!

Russ Johnston | Director – Sales & Marketing | rjohnston@mcgowancompanies.com