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Advanced Risk Management from Your Trusted Commercial Insurance Broker

At Aebly and Associates insurance, we understand that traditional insurance solutions may not always provide the most cost-effective coverage for your business. As your experienced commercial insurance broker and insurance agency, we offer comprehensive captive insurance solutions that help businesses take control of their risk management while reducing long-term insurance costs.

Complete Turnkey Captive Services

We offer complete turnkey services from reviewing your current program, analyzing claims and risk drivers, recommending alternative solutions, placing services out to bid such as loss control, captive management, actuarial and other services, and managing the initial setup and ongoing operation of your program. We make the process simple so you can concentrate on your business and leave the heavy lifting to us.

With our experience in both the fully insured and alternative market, you'll have one set of trained eyes looking at all options and providing solutions that have your best interest in mind, not the interest of the carrier or other parties who may not be aligned with your goals and objectives.

Types of Captive Insurance Solutions

As your independent insurance agent, we provide access to various captive structures designed to meet different business objectives:

Single Parent Captives - Wholly-owned insurance companies that provide coverage exclusively for the parent company and its subsidiaries.

Group Captives - Collaborative structures where multiple businesses share ownership and risk, ideal for small business insurance participants seeking captive benefits.

Employee Benefit Captives - Specialized structures designed to manage group health insurance costs and other employee benefits expenses.

Rent-a-Captives - Cost-effective entry point into captive insurance without the full commitment of establishing your own captive.

Risk Retention Groups - Member-owned liability insurance companies that provide coverage for similar businesses in the same industry.

Self-Funded Arrangements - Direct risk assumption strategies that eliminate traditional insurance carrier involvement.

All of these have a place in the market and can help clients meet different objectives. Our job is to sort through the options and advise you on a course of action that helps you control risk and ultimately provide the lowest cost for your risk transfer program.

Why Consider Captive Insurance?

Approximately 50% of the total in-force insurance marketplace is considered to be written in the alternative market. For the right client, it could be the best long-term risk management program you have ever participated in.

Captive insurance solutions work seamlessly with your existing business insurance portfolio, including workers' compensation insurance, professional liability insurance, and other commercial coverage needs. This integration provides comprehensive risk management while maintaining cost control.

Is Captive Insurance Right for Your Business?

When evaluating whether captive insurance is right for you, consider these key questions:

Financial Stability Assessment

  • Is my company financially stable?
  • Can my company fund the initial investment and ongoing operation costs?

Risk Profile Evaluation

  • Does my company have a good loss history?
  • Does my company have uninsured or underinsured risks?

Premium Volume Analysis

  • Does my company spend in excess of $1 million in workers' compensation, auto and general liability insurance?
  • Does my company have 100 or more employees on its group health insurance plan?

Product Liability Considerations

  • Does my company sell a product that has a warranty, or sell someone else's warranty that could benefit from reinsurance?

Benefits of Working with Aebly and Associates

As your insurance broker, we bring extensive experience in both traditional and alternative risk management solutions. Our expertise spans business insurance, group health insurance, workers' compensation insurance, and professional liability insurance, providing a complete perspective on your risk management needs.

Whether you're a small business insurance client exploring group captive opportunities or a large corporation considering single-parent captive structures, our team has the expertise to guide you through the evaluation and implementation process.

Our relationship doesn't end with captive implementation. We provide ongoing support, performance monitoring, and strategic guidance to ensure your captive insurance program continues to meet your evolving business needs.

Ready to explore how captive insurance can benefit your business? Contact our expert team at Aebly and Associates insurance to assess your options and determine if captive insurance is the right solution for your risk management strategy.

Call us at (716) 675-2100 to schedule a comprehensive evaluation of your captive insurance opportunities.

Tailor coverages and policy language that fits your unique risk management needs, not an “off the shelf” program sold by insurance carriers. Secure coverage, terms and conditions that are not available or unacceptably priced in the retail insurance markets.

With direct access to the reinsurance market, you will be insuring your risks at wholesale versus retail rates. Additionally, your premiums will be based on your own claims experience versus industry pricing and trends in the commercial market. Your costs will also be reduced by eliminating broker and agent commissions, carrier overhead and profit which can account for 35% to 45% of the premiums you’re currently paying. 

Better management and more control over the claims process, from selection of the claims management firm, and defense counsel, to participation in defense strategies. Less red tape means the entire claims process is less bureaucratic and adversarial than the traditional carrier method. These programs can offer additional estate planning tools for the family owned businesses. 

Premiums paid into a captive can be invested and the investment income accrues to the benefit of the captive owners. Underwriting profit enhances surplus and the financial strength of the captive. 

Properly structured captives receive premium which is tax deductible to the insured business. For closely held multi-generational family businesses, the captive can be owned by the children or heirs to the business. This effectively transfers wealth from the insured business, in the form of a premium payment, to the estate of the children or heirs without the imposition of estate taxes or erosion of the estate’s unified credit amount. The risk management benefits of a captive are primary; however their tax advantages are also very important. 

Captives created under IRC section 831(b) can receive up to $1.2 million in premiums each year tax free, owing taxes only on its investment income. Insurance profit distributions from an 831(b) captive are only taxed when they are actually distributed as qualified dividends, and at the dividend income tax rate, which is less than the much higher federal tax rate on ordinary income. The “tax deferral” feature of captives provides substantial tax planning options, especially if the tax rate on ordinary income, dividends and long-term capital gains change in the future. Additionally, if a captive owner retires to a state with lower or no state income tax, they can substantially reduce or even eliminate state taxes on dividends or long-term capital gains distributions received from their captive.

Through the proper use of conservative underwriting techniques and access to the lower cost reinsurance markets, your captive can build long-term capital surpluses. These surpluses allow you to increase your captive’s capacity for risk, thus further lowering your overall insurance cost basis. 

A captive has the ability to underwrite unrelated risks. If the opportunity presents itself and the unrelated risk is conservatively underwritten, the captive has the opportunity to generate an underwriting profit. 

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We offer complete turnkey services from reviewing your current program, analyzing claims and risk drivers, recommending an alternative solution, placing services out to bid such as loss control, captive management, actuarial and other services, and seeing through the initial set up and ongoing operation of your program. We make the process simple so you can concentrate on your business and leave the heavy lifting to us.

 

With our experience in both the fully insured and alternative market, you’ll have one set of very trained eyes looking at all the options and providing you with solutions that have your best interest in mind, not the interest of the carrier, broker or other party who may not be aligned with your goals and objectives.

  • Single Parent Captives
  • Group Captives
  • Employee Benefit Captives
  • Rent-a-Captives
  • Risk Retention Groups
  • Self-Funded Arrangements

All of the above have a place in the market and they all can help clients meet different objectives. Our job is to sort through the options and advise you on a course of action that helps you control risk and ultimately provide the lowest cost for your risk transfer program.

Approximately 50% of the total in-force insurance marketplace is considered to be written in the alternative market. The reason for this is simple; for the right client, it could be the best long-term risk management program you have ever participated in.

When evaluating whether captive insurance is right for you, ask the following questions:

  1.  Is my company financially stable?
  2.  Does my company have a good loss history?
  3.  Can  my company fund the initial investment and ongoing operation costs?
  4. Does my company have uninsured or underinsured risks?
  5. Does my company spend in excess of $1 million in workers’ compensation, auto and general liability insurance?
  6. Does my company have 100 or more employees on its health insurance plan?
  7. Does my company sell a product that has a warranty, or sell someone else’s warranty that could benefit from reinsurance?

Thank you for the opportunity to allow us to assess your options.