Captive Program

Captive Programs provide specialized insurance solutions where a company forms its own insurance entity to manage and finance its unique risks.

Why look into a captive program?

With over 15 years of engineering field experience and a panel of industry consultants, we have successfully improved premium management strategies for companies across the United States and abroad. This provides benefits from both a cost and coverage perspective.

Captive Programs offer greater control over coverage, pricing, and claims while potentially reducing costs and improving long-term risk management. 

While we partner with most of the oil and gas insurance carriers, we also provide access to a specialized captive program for oil and gas companies.

 

Benefits of a Captive Program

  1. Pricing is primarily based on member’s 5 year loss experience
  2. Investment income earned on loss funds & cash collateral
  3. Premium & collateral formula explicitly defined
  4. Proven, reliable method for closing underwriting years
  5. Underwriting profit returned as dividends to member-owners

 

Renting Versus Owning

As premiums have risen over the last few years, the insurance conversation and landscape has changed. Companies want to move from essentially renting insurance, to becoming owners of their program.

This is especially true for companies with a reputation for safety and excellence in operations. You don’t need to be a cash cow for insurance carriers, and can instead experience net positive results and even greater independence with a different strategy.

Not all captives are created equal. We partner with Captive Resources to provide administrative support, and they in turn manage most captive programs across the United States.

We’re excited to share this strategy to capitalize on a new era of growth for oil and gas, and look forward to hearing from you.

 

Where we've seen success:

  • Companies with best-in-class commitment to safety and claims oversight
  • Risk assessment: Engineering companies that are classified as high-risk due to oilfield exposure may be placed into a program with better benchmarks.
  • Simplified administration process
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