In recent years, many businesses have responded to perceived unpredictability and unfairness in the commercial third-party liability insurance marketplace by creating their own insurance alternatives. Often, the alternative takes the form of a captive insurance company, meaning, in general, that the insureds have an ownership interest in their insurance provider. The notion behind a captive is that by taking ownership of the risk, insureds can stabilize and control their insurance situation in the short term and adopt practices to reduce losses and the cost of insurance over the long-term.
At Dickie, McCamey & Chilcote, we specialize in advising and assisting our clients in such endeavors. Our firm has been involved in the creation and management of captive insurance programs (onshore and offshore) since the 1970s. In doing so, we have tailored our services and firm infrastructure to meet the alternative insurance needs of our clients in a variety of settings. From self-insurance trusts to admitted carriers, to risk retention groups and offshore reinsurance companies, we have been successful in developing such insurance programs from concept to licensure.
Following establishment, our firm is well experienced in assisting in the ongoing daily operation of the new insurance program. In addition to employing or coordinating with specialists in the field of insurance and claim administration, the firm has developed and utilizes a claims management system that allows for the efficient and accurate daily handling of claims and accounting information. We find that these services, offered at cost-effective hourly rates, permit the captive to avoid the high fixed costs associated with traditional insurers, while making the insurance program highly responsive to the needs of the owner-insureds. Our firm’s long and outstanding history as litigation defense counsel positions us favorably to evaluate and respond to claims, as well as to assist the insureds in developing strategies to reduce claim frequency and severity.
In summary, in collaboration with other consultants (accounting, actuarial, etc.) Dickie, McCamey & Chilcote’s Captive and Insurance Services Group is available to assist the firm’s clients with respect to the:
- Evaluation of whether a captive may serve the needs of the client (feasibility analysis)
- Selection of an appropriate insurance vehicle
- Formation and acquisition of licensing, along with ongoing corporate services
- Daily administration including claims handling and loss run management
- Procurement of reinsurance/excess placements
- Supervision, evaluation, and handling of claims
