Designed for large property management companies who desire to remove the 3rd party carrier from insurance programs and capture ancillary income from the premiums. Captive insurance programs allow the parent company to cover risks that would otherwise not be insurable (including personal liability and contents) along with tax saving opportunities.
Captive Implementation Timeline
Step 1: Prepare
Client makes the decision to proceed and engages company for cell implementation
Step 2: Analyze
Develop a business plan and gather information for the application; Obtain Actuarial opinion (if required)
Client review/acceptance of cell agreements
Step 3: Submit
Submit full application to regulator
Step 4: Respond
Respond to regulator questions
Submit final documentation
Receive Insurance License* & Organizational Certificates from regulator
Step 5: Fund
Open Cell Bank account
Capitalize Cell
Start Underwriting in Cell*
*Policy may be back-dated with inception date prior to the license date with regulatory approval
Risk vs. Reward
With a captive solution, property management companies are responsible for large upfront set-up costs along with required yearly fees to maintain their insurance carrier standing, and premiums must be set to avoid underwriting losses. When considering a captive insurance solution, it is vital to weigh the risks vs rewards. Some of the pros and cons of utilizing this type of program include:
Lower comparative operating costs
Property managers receive access to our multifamily-specific knowledge, account management, and resident support
Access to our IRIS policy monitoring and policy compliance software
Allows for greater flexibility and control over the property managements risk management strategies and costs
Reduce the cost of insurance for high-risk concerns and insure risks that are not regularly covered
Residents could still choose a 3rd party insurance provider for contents coverage
Heavy lift with ongoing reporting, fees, and program maintenance
Learn More
Curious to discover how our insurance programs can benefit your apartment communities or single-family rentals? Allow us to arrange a conversation with one of our sales associates who can kickstart your journey!