In today’s volatile insurance market, more and more businesses are discovering a powerful alternative to the traditional insurance model — group captives.
At Bender Insurance Solutions, we believe in empowering our clients with knowledge that helps them protect their bottom line and plan with confidence. As the largest and only employee-owned commercial insurance brokerage in the Sacramento region, our mission goes beyond placing policies. We are trusted advisors and strategic partners, committed to helping you uncover solutions that bring long-term stability, transparency, and control to your insurance program.
One of the most impactful strategies we recommend for qualifying businesses is joining a group captive.
What is a Group Captive?
A group captive is a member-owned insurance company created by like-minded businesses to insure their own risk. Instead of paying premiums to a traditional insurance carrier — where unused funds become the insurer’s profit — captive members share in the cost, performance, and potential financial rewards of their program.
In a group captive, your premiums are based on your company’s loss history, not industry averages. That means if you have strong safety practices and a solid claims record, you can benefit directly from your good performance.
Why Businesses Are Moving to Captives
The traditional commercial insurance market is unpredictable. Rates can spike due to market cycles, carrier losses, or industry-wide events — even if your company has an excellent claims history.
Group captives turn that model on its head by offering:
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Premium & Cost Control – Your rates are tied to your own performance, not the industry’s.
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Profit Sharing – Unused loss funds and investment income are returned to members.
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Stability & Predictability – Captives are insulated from the highs and lows of the traditional market.
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Enhanced Risk Management – Members gain access to proactive safety resources, claims management, and benchmarking tools.
Who Qualifies for a Group Captive?
While every program has its own criteria, ideal members typically:
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Have low to moderate risk operations with a strong claims record.
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Generate between $400,000 and $8 million+ in annual premiums across lines such as Workers’ Compensation, General Liability, and Auto.
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Operate in industries like manufacturing, construction, distribution, retail, healthcare, hospitality, professional services, and more.
If your business values stability, transparency, and long-term savings — and you’re tired of “renting” insurance from a carrier — a captive may be the right fit.
How Captives Protect Your Business
Captives are designed to protect members from catastrophic losses while allowing them to retain and reward positive results. Layers of protection include:
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Loss Funds (A & B Funds) – Member contributions set aside for predictable claims.
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Aggregate Excess Insurance – Protects the group from unusually high claim totals.
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Reinsurance – Caps catastrophic claim costs and minimizes future premium impact.
Even in challenging years, the structure limits your downside while keeping your potential upside intact.
Real-World Results
Captive members often see significant dividends returned after a few years, along with steady investment income on their capital. Over time, this model can transform insurance from a pure expense into an asset — something that not only protects your business but helps it grow stronger financially.
The Bender Advantage
At Bender Insurance Solutions, we work closely with Captive Resources, one of the most experienced administrators in the country, representing more than 6,800 captive shareholders and returning over $4 billion in dividends to members.
Our Alternative Risk Markets team, led by Roland Guillen, helps clients evaluate, join, and thrive in group captives — providing guidance every step of the way, from initial analysis to ongoing management.
Frequently Asked Questions About Group Captives
1. How does a group captive save my business money?
Group captives base premiums on your individual loss history rather than industry averages. If your company has a strong safety record and low claims, you could pay less in premiums and even receive dividends from unused funds.
2. What types of insurance can be placed in a group captive?
Common coverages include Workers’ Compensation, General Liability, Auto Liability, and Auto Physical Damage. Some captives also offer Medical Stop Loss coverage.
3. How quickly can I start seeing a return from a group captive?
While timelines vary, many members begin to see dividends and investment income within a few years, depending on loss performance.
4. Is there a risk of losing money in a group captive?
Yes, as with any insurance program, losses can impact returns. However, the captive structure includes multiple layers of protection — including reinsurance — to limit your financial exposure.
5. Can small and mid-sized businesses join a group captive?
Yes. While premiums of $400,000+ are common for entry, smaller accounts with strong loss histories may still qualify, especially if they have potential for growth.
6. What industries are best suited for group captives?
Manufacturing, construction, healthcare, distribution, hospitality, professional services, retail, and more — as long as there’s a solid safety record and proactive risk management.
7. How do I know if my company qualifies?
Bender Insurance Solutions offers a feasibility analysis to review your claims history, premiums, and risk profile to determine if a captive is a good fit.
Is a Group Captive Right for Your Business?
If you’re ready to take control of your insurance destiny, reduce costs, and build equity over time, it may be time to explore a group captive program.
📞 Contact Bender Insurance Solutions today to schedule a no-obligation captive feasibility analysis. Our team will help you determine if this powerful approach aligns with your goals and risk profile.
