Construction

Creating sustainable, strategic solutions.

The alternative insurance market, which includes captive insurance companies, has been rapidly expanding with many domiciles experiencing double-digit growth in 2021. It comes as no surprise that many companies today are facing a variety of challenges that may affect their bottom line.Companies that are financially sound, with sufficient insurance premium and a focus on risk management, and that are driven by an interest in financing assumed risk positions, are ideal candidates to consider a captive.The primary drivers for companies to evaluate the effectiveness of a captive insurance company as part of their enterprise risk management program include the following: Increased premiums and reduced capacity due to a hardening market Lack of control over risk management and claims handling Lack of availability of certain coverages in the traditional commercial insurance market Increased retentions What Is Captive Insurance?A captive insurance company is an entity formed to insure or reinsure the risks of its parent organization. With a long-term commitment to an alternative risk transfer vehicle, a captive serves as a formalized loss retention mechanism designed to enhance the parent company’s risk management program and/or enhance the corporate bottom line. While captives are highly regulated entities that are required to operate as insurance companies, they also offer flexibility that is not always available through the traditional commercial insurance markets.To ensure compliance and success, captives are licensed in a domicile, administered, and monitored by an infrastructure of controls, governance and expertise. Captive insurance provides organizations several advantages over traditional insurance, including: Increased flexibility to meet unique insurance needs or cover uninsurable exposures Improved risk management control Improved claims handling and control Diminished impact of market volatility Serve as facilitator of risk management programs Stabilization of operating cost and improved cash flow Access to investment income from unearned premiums Direct access to reinsurance markets The opportunity to develop a customized insurance program Expert Analysis and Exceptional ServiceWith more than 110 years of combined alternative risk transfer experience, NFP’s Risk and Insurance Strategy Collective (RISC) offers exceptional service and will assist clients in determining if a captive insurance company is right for them.No two captives are the same. By working closely with our clients, RISC will tailor a solution that is specific to the needs of the organization.Our team will structure, implement, operate and service their captive in the most cost-effective way possible. In the preliminary stages of captive engagement, our insurance and risk management experts work together with actuaries and financial stakeholders to compile and analyze all relevant data. We examine such factors as premium rates, reserve adequacy, capitalization requirements, participation requirements and source of funding for the proposed captive insurer. We offer services that span the entirety of the captive process: Pre-feasibility and evaluation of current and proposed programs Formal feasibility studies Captive formation and implementation Business plan development Ongoing captive management Strategic review of existing captive programs Flexible, Cost-Effective InsuranceAs the commercial market continues to harden and clients are being forced into placements that are not ideal, alternative risk solutions become more appealing. Implementing a captive insurance company not only allows for creative problem-solving but also the opportunity to accommodate rapidly changing coverage needs that exceed anything available commercially. RISC has the capabilities and forward thinking to create solutions that solve the unique problems our clients are facing. With guidance from our team, we will consult and develop alternative risk options with companies across all industries and locations to assure their enterprise risk management and risk financing objectives are met. Alternative risk solutions play a pivotal role within the insurance marketplace, and we develop state-of-the-art solutions to meet the present and future needs of our clients.

Protecting your projects.

At NFP, we've got the industry insights and go-to attitude that'll help get protections in place for your plan. Let's work together on the coverage you need so you start tackling the tough stuff.We're not tied to any specific vendor or product, which means we'll find what will work best for you to help keep your enterprise protected, safe and secure.

Somebody to lean on.

Unfortunately, accidents do happen. When they do, know you do not have to deal with them alone. NFP is here to help.Our diversified National Claims team is your advocate and liaison with the workers’ compensation claims administrator to ensure the injured workers get the medical care they need to quickly recover and return to work. At the same time, the team proactively monitors the claims, ensuring they are positioned for cost effective resolution and accurately reserved. Your employees get the care they need faster, at a lower total cost of risk to you.Caring for Your Injured WorkersLike you, we care about your employees — and we want to make sure your relationships with them remain strong. From the onset of the accident until the injured employee is back on the job, we are there to guide you through a customized post-injury management plan that includes: Immediate post-injury response Medical management Transitional duty/Return to work programsBest Practices Rule NFP’s National Claims team follows a set of best practices that emphasizes the delivery of meaningful and valuable services to our clients. Our relationship with you is driven by a focus on understanding each claim and the coverages in place so we can maximize the benefits available to your company. Your NFP team: Provides valuable oversight and direction with the claims administrator to ensure that you have the information and resources to make the best financial, legal and ethical business decisions for the management of your workers compensation claims. Facilitates ongoing communication between you and the insurance carriers/TPA. Works with the claims administrators to resolve, close out and/or investigate claims issues. Interprets loss runs and other loss data to identify injury trends. Once identified, we will collaborate with you and our claims management specialists to implement injury prevention programs because the most cost effective injury is a prevented one. Monitors lost time/indemnity claims, litigated claims, and subrogated claims. This includes strategizing and establishing action plans for optimum resolution. Analyzes experience modification worksheets and prepare Experience Modification Projections. Identifies overlapping coverage and puts applicable policies on notice. Ensures that claims below policy deductible are evaluated and handled correctly. Creates client-specific handling instructions to set expectations for how the claim should be managed, clearly identify the communication flow between the you and the claims administrator, and address the handling of issues that may arise. Helps you better understand the workers’ compensation process and assists with the implementation of best practices that empower ownership and the ability for you to internally manage your workers’ compensation claims.Contact NFP today to learn how we can help you get the best possible outcome for you and your claims.