Agency captives are organized to produce an underwriting profit and are considered a profit center. The size of the agency captive market is hard to accurately estimate, but it is generally accepted that the market is over $4 billion. A significant driver of agency captive ownership and growth are “program” captives, a $32 billion market where the premium is generated from the producer’s expertise in a specific industry or market. Insurance companies are also fueling growth in agency captives as many outsource traditional carrier functions, including underwriting, claims, and policy management to qualified and experienced agents, brokers and other intermediaries.
The primary motivation to create an agency captive is usually when the producer feels there is not an equitable revenue stream benefitting the agency or program owner as a result of placing the coverage with a carrier. Commission and any incentive agreements may fall short of covering the cost of the firm to produce a profit in return for providing underwriting and transactional expertise, client management and a better than average industry loss experience. Additional reasons include profit sharing with loyal policyholders, market disruption, incentives for a valuable employee or to produce a revenue for an association insurance program.
Green Mountain has qualified and experienced consultants, underwriters and managers to help you build your insurance agency captive - from planning to active management. We also provide:
Vermont, with over 1,000 captives, also benefits our Green Mountain clients because of its history of being the “gold standard” of captive domiciles, but also specific agency captive.
Over 1,000 companies have already realized the advantages of captive insurance operations licensed in Vermont. In fact, for several years now, Vermont has ranked as the number one captive domicile in the United States and the number three-ranked domicile internationally.
Vermont’s success to date can be attributed to a combination of factors, not the least of which is the ongoing leadership of Vermont’s Governors, both past and present, and both houses of the State Legislature who continue to uphold Vermont’s longstanding tradition of providing solid support for this state’s captive industry. This fact ensures that as captive industry needs change, captive legislation in this state evolves and is further enhanced with timely and meaningful changes made to Vermont captive law.
Vermont continues to be recognized as a quality domicile by captive owners, brokers, regulators, and others in the industry due to its high level of professionalism. An ever-increasing number of companies are further recognizing Vermont as their captive insurance domicile of choice.
Managed by Strategic Risk Solutions, Vermont’s leading Captive Management Firm all Green Mountain clients are guaranteed a level of service that is second to none.
Providing a full range of captive management services in the formation of captives and their on-going operation, SRS services are tailored to fit the individual needs of our clients. We enforce a strict peer review process to ensure the accuracy and quality of our work including an annual stewardship report detailing our activities during the year.CONTACT US