Group captives—captive insurance companies owned by multiple organizations—represent approximately 19% of all insurance companies in the Cayman Islands. As of Q4 2024, they manage total premiums of approximately $4.9 billion and total asset value of approximately $13.7 billion.
Establishing a group captive insurance program provides the flexibility to customize coverage to fit your specific needs. Whether it’s unique policy terms, limits, or exclusions, you can design a plan that addresses the unique risks of your group. This tailored approach offers advantages that traditional insurance may not provide.
This strategic model allows companies to come together, pool their resources, and take control of their insurance needs. At GCM, we strive to help clients and prospects understand the benefits and considerations of being in a group captive. If you’ve ever wondered if a group captive is right for your business, you’ve come to the right place.
Group Captive Benefits
Group captives save members money by sharing risks and expenses, allowing companies to benefit from collective purchasing power. This means better rates and terms for insurance coverage. Members gain more control over their insurance programs, including policy terms, claims handling, and overall strategy, aligning the captive’s operations with their business goals. This is especially beneficial for smaller businesses that might struggle to secure affordable insurance through traditional markets.
Group captives also offer an exciting opportunity for profit sharing and collaboration among members. If the captive performs well and generates a surplus, that surplus can be redistributed to the member companies. This profit-sharing approach motivates members to share and engage in effective risk management practices, leading to lower claims and greater profits for all.
Additionally, group captive insurance companies often have access to more favorable reinsurance markets, allowing them to transfer some of their risks at competitive rates. This enhances their financial stability and provides extra protection for all members.
Own Your Outcomes
Setting up a group captive insurance company in the Cayman Islands offers numerous benefits, including cost savings, customizable coverage, better risk management, access to reinsurance markets, and increased control over insurance operations. If you’re ready to take control of your insurance, reach out to our team today!