What is group captive insurance?
A group captive insurance program allows multiple businesses to join together in a shared insurance arrangement to help manage costs and risk. By pooling their risks, participants gain access to more customized coverage and the opportunity to benefit financially through underwriting profits and investment income.
For many mid- to large-sized businesses, rising insurance costs and market volatility can pose a challenge to maintaining long-term cost and coverage stability. For organizations with strong risk management practices and a desire for greater control, a group captive insurance company may offer a strategic alternative to the traditional insurance model.
Why choose Travelers for your group captive insurance needs
Travelers Commercial Group Captive insurance brings this model to life with the financial strength and risk expertise of Travelers. Participants gain access to industry-leading claim and risk control services across auto, general liability and workers compensation, along with greater ownership of their risk strategy and a clear path to reducing total cost of risk over time.
Travelers is a proven leader in group captive solutions. Here’s how our approach helps businesses thrive in this collaborative model.
Benefits of captive insurance
Carefully selected participants
Participants are vetted using rigorous industry-specific underwriting standards to help create an aligned peer group.
Customized pricing analysis
Expert actuaries deliver industry-informed pricing analysis tailored to your unique risk profile.
Peer collaboration and benchmarking
Continuous improvement of safety performance and loss prevention through collaboration with other risk-focused businesses.
Investment income potential
A structure that enables access to investment income benefits without relying on complex offshore legal structures.1
Broad coverage solutions
Opportunity to add critical coverages such as directors and officers liability, cyber insurance and excess casualty.
Who is captive insurance for?
Generally, the types of midsized to large companies that should consider group captive insurance programs include:
- Companies with strong safety practices and management commitment to risk control and safety - Captives prioritize risk management and safety, and businesses that already excel in these areas will likely see benefits from participating.
- Companies aiming for long-term insurance cost stabilization and potential savings - Captive insurance can offer stable pricing, insulation from market fluctuations and potential for sharing in underwriting profits.
- Companies comfortable retaining a degree of risk and investing in the captive - Participating in a group captive requires a financial commitment and willingness to be involved in its management. Group captives are not a quick fix but a commitment to a proactive and collaborative approach to risk management.
Specialized services designed to improve results for group captive participants
How does Travelers Claim Services improve captive insurance outcomes?
Travelers Claim Services delivers efficient outcomes through a combination of experienced, specialized personnel, innovative tools and deep claim data and analytics.
Our Claim professionals undergo regular training to remain among the best in the industry. Equipped with advanced analytics, they identify loss trends and tailor resolution strategies to help minimize claim costs and improve recovery outcomes.
What risk control support does Travelers provide to captive participants?
Travelers Risk Control can bring data-informed guidance to help businesses mitigate risk and improve operational safety.
Risk Control consultants can help group captive participants to assess exposures and can recommend risk mitigation improvements for the participant’s business and industry.
Travelers helps companies enhance safety, reduce volatility and gain greater control over long-term risk.
Can group captives get real-time analytics, claims activity and loss reports?
Yes. Group captive participants can use Travelers e-CARMA® which is an advanced risk management dashboard providing real-time access to data.
With real-time analytics and customizable reports, e-CARMA helps businesses track claims activity, uncover loss patterns and take proactive steps to mitigate risk. Its intuitive design makes it easy to integrate into your broader risk management strategy.
Group captive insurance results by coverage line
Travelers has achieved measurable results across core commercial insurance lines:
Workers compensation
- Proven injury management helps proactively reduce claims.
- Advanced solutions help improve employee injury outcomes (70% within 30 days2).
Commercial auto
- Comprehensive fleet management aids in minimizing losses.
- Superior subrogation services (66% subrogation recovery rate achieved, compared to an industry average of 27%3).
General liability
- Strategic defense using predictive models and proactive investigations.
- Rapid claim resolutions (70% of claims closed within 90 days4).
Consider the following questions when evaluating whether group captive participation aligns with long-term insurance and risk management goals:
- Is long-term insurance cost stability a priority?
- Is there a strong focus on proactive risk management and peer collaboration?
- Is there interest in potential financial benefits from shared risk and investment income?
Explore how Travelers Commercial Group Captive insurance can transform your company’s approach to risk and profitability.
Contact your Travelers representative to discuss whether a group captive structure is the next strategic risk management move for your business.
Sources
1 Reimbursements are not guaranteed and are dependent on captive performance.
2 Travelers claim data, three-year average, 2022-2024
3 Recoveries/Assignments from MCR Data, 2023
4 Travelers GL claims closed in 2024
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