Alternative Market Solutions

The Crichton Group is committed to finding and providing the best options to reduce their client’s total cost of risk through innovative and proven solutions. Using the strengths and flexibility of the alternative market is one way that The Crichton Group can help clients meet their risk management objectives. The alternative market offers a range of solutions including:

• Captives
• Self-Insurance
• Large Deductible Programs
• Combination Plans

It is important to note that alternative risk solutions are not designed for all businesses. They must meet have a certain business profile relative to the size of the business, financial strength and other specific criteria depending upon the alternative market mechanism or mechanisms employed. Here are some important considerations:  

Alternative Risk Solutions – A Growing Trend

The Alternative Risk marketplace provides opportunities for best-in-class businesses to control their cost of risk. Over 50% of the commercial insurance marketplace uses alternative risk transfer methods to replace traditional market programs. Business owners across the nation are switching from renting insurance programs through traditional insurance market to owning insurance programs through the alternative market. 

Captive Insurance Programs – Increased Availability

Captive insurance companies have been used since the early 1920’s and have gained in popularity within the last 30 years. The concept of group captives has allowed  companies previously unable to enjoy the benefits of excellent risk management, risk control and claims histories the opportunity to control their cost of risk. A captive is an insurance company that provides insurance to and is controlled by its owners.  

Group Captives -

The Crichton Group has developed an expertise in the area of group captives. We represent over eight homogeneous or heterogeneous group captives. Industries served by these captives are General Contracting, Subcontracting Trades, Staffing, Roofing, Manufacturing, Distributing, Medical Patient Transportation, Recreation, Transportation and Financial.

831b Captives -

The 831b captive was setup by Congress to allow companies to cover specific insurance needed in addition to traditional programs. This risk management mechanism can be used as an estate tool providing the company with an opportunity to insure risks normally not insurable or that are difficult to insure with potential financial and tax advantages.

Captive Qualifiers 

• Best of Class
• Financially Sound
• Top Management Involvement
• Safety Culture Commitment
• Good Risk Management Practices
• Long Term Commitment
• Reasonably Predictable Insurance Risk