Risk Financing

Thinking Strategically About Your Insurance

Transform yourself from a standard insurance buyer into a sophisticated organization that finances risk through creative solutions rather than the traditional insurance market. If you are confident in your operation and safety culture and can leverage strong insurance, claims, and/or safety performance, you might want to consider risk financing solutions. The options could include anything from self-insurance plans to loss-sensitivity plans to captive programs.

Although captives have been used for decades, many companies have trouble understanding which captive options are available to them and how to evaluate those options. And if they don't have the right consultants helping them, they can end up in a captive product that doesn't align to their strategic goals – the classic “square peg in a round hole” misfit.

Graham Company is different. We pride ourselves on being a truly independent consultant. Our goal is simple: To help you determine if a captive is right for your organization, and if so, to find the captive option that best meets your organization’s individual needs.

What if we told you, through your insurance program, there was a way to acheive:

Underwriting Profit and Investment Income Based on Your Performance

Rate Stabilization or Even Rate Reduction

Better and More Comprehensive Coverage

Choice and Control

What Type of Captive Could be Right for You?

There are three main types of captives, each designed to fit different needs, from insurance, costs, to timeline. Each have their own benefits and disadvantages, making it important to educate yourself on them so you can make an informed decision.

Single Parent Captive

A single parent captive is set up and operated by a single owner to insure its own risks and the risks of its subsidiaries and affiliates. Single Parent captives can also provide coverage to nonrelated organizations (3rd party or entrepreneurial risk) to generate new revenue streams for the parent organization.

Rental Captive

A rental captive, also referred to as a segregated cell captive, is owned by an organization that is not one of the policy holders, such as a broker, captive manager or insurance company. With this type of captive, an organization rents a captive facility or cell from the captive owner to finance its risks. This can be a good fit for a company that wants thier own deal, but may not have the financial capital needed to support building a single parent captive.

Group Captive

A group captive is owned by group of unrelated companies to insure risks of its owners. These companies can be in either similar businesses or in different businesses. A group captive is typically used for traditional insurance with specific, limited coverages available (i.e. Auto, General Liability, and Workers’ Compensation). Members typically gain access and ownership to the captive through a onetime stock purchase. Each member has equal voting shares and dividend returns are based on both individual and group performance.

How We Can Help

If you are a long-term strategic thinker with a good safety culture, strong claims performance and a desire for insurance stability, we can help you:

Evaluate Your Needs and Analyze Your Business

Graham will do an analysis on your insurance program to determine more lucrative ways to finance your risk and in what way so that you can benefit from your strong safety culture and claims performance – not just the insurance carriers.

Find Innovative Solutions

We are always working with our clients to embrace technology infused solutions to stay ahead of the curve with the goal of all of our strategic initiatives ultimately being to improve the customer experience.

Manage Your Claims and Risk

The mission of the Claims Services Department is to provide our clients with a superior level of technical and professional claim services which achieve the greatest impact on your insurance costs.

Stay Educated

Graham has an array of resources to provide education to you on the various types of risk financing solutions and key considerations for each including captive insurance programs, deductibles, corridors, and retro programs.

Our Approach

As part of the P²RIME® process, Graham’s risk financing team can help you evaluate, design and implement a customized risk financing solution that will help you keep insurance costs down, stabilize your insurance program, and align with your overall strategic objectives.

Our Approach

Meet Our Team

The Graham Company risk financing consultants are different. We pride ourselves on being a truly independent consultant, with access to domiciles across the United States and the Caribbean. Our seasoned team will:

Help you understand your different risk financing options, including single parent, rental, and group captives
Collaborate and advise you on the best potential solutions for your business
Market and place appropriate reinsurance
Build and implement your captive program
Facilitate partnerships with actuaries, captive consultants/managers, and insurance/reinsurance carriers
Provide you with analysis tools, educational materials, and market intelligence

Carl M. Bloomfield

AAI, Managing Director, Enterprise Risk and Advisory Services

Blair Garland

Producer, Captive and Alternative Risk Solutions

Kevin D. Smith

CPCU, ARM, Managing Director

Group Captive - A Graham Company Case Study

In 2001, we had a number of clients that were evaluating group captives, seeking an alternative to traditional insurance to gain access to underwriting profits as a result of their commitment to safety and loss prevention. They turned to us as their valued insurance broker for strategic advice on which option to select based on size and structure. During this process, we came to the realization that we could take the reins and developed our own group captive. This provided us the opportunity to structure it in a way that best suited our clients and their unique needs.

See the case study